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According to the data from the Reserve Bank of India (RBI), the gross non-performing asset (GNPA) ratio pertaining to MSMEs in the scheduled commercial banks (SCBs) has dropped to 6.1 per cent as of December,2022.SCBs’ GNPA ratio in MSME loans in FY22 stood at 7.6 per cent & 7.3 per cent in FY21. GNPA ratio is the ratio of the total gross NPAs of the total advances made by a lender in a particular period.    Among MSMEs, banks’ GNPAs in priority sector credit to micro and small enterprises (MSEs) amounted to Rs 1.17 lakh crore in FY22 in comparison to Rs 1.28 lakh crore in FY21.
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