17. Currently, the Indian micro, small and medium enterprises (MSME) credit portfolio is estimated at Rs 12
lakh crore. The non-performing asset (NPA) for MSMEs has increased continuously over the last few
years to reach 8.7 per cent as on March 2016 and is expected to rise to 9.8 per cent as on March 2017.
As per the latest risk assessment, MSMEs falling in the highest risk bracket of CMR 7-10 have a credit
outstanding of Rs 54,799 crore, which is at risk of going into NPA. Despite this, banks and credit
institutions have been showing a keen interest in the sector due to which the credit lending has
increased by 11 per cent last year.