Road InvITs are projected to expand their assets by about 30% this fiscal year, reaching roughly Rs 3.9 lakh crore by March 2027. The jump is attributed to accelerated monetisation of toll-road assets by NHAI and asset sales under the hybrid annuity model. With a widening investor base and controlled leverage, analysts expect sturdier credit profiles.
India is spearheading its BRICS chairship push to strengthen MSMEs across member nations, focusing on improving access to finance and expanding fintech-driven credit. BRICS partners are exchanging approaches to tackle persistent funding and growth barriers for small businesses. The effort is designed to build more competitive MSME ecosystems that can spur investment, productivity, and job creation globally.
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The government has launched ECLGS 5.0 to support MSMEs and the airline sector, providing extra credit of Rs 2.55 lakh crore. State Bank of India is expected to play a major role, with Chairman CS Setty indicating SBI could contribute roughly Rs 70,000 crore to Rs 80,000 crore, aiming to accelerate recovery and sustained lending.
Microfinance is regaining momentum after 11 quarters of contraction. In the January–March period, the sector returned to growth as market size expanded and loan portfolios rose 5.3%. Delinquency rates declined across lender categories following earlier write-offs, signaling a more stable recovery and improving credit health for borrowers and lenders alike.
A new survey of 24 banks across segments points to growing optimism on credit expansion, with lenders expecting steady momentum in non-food credit. The bigger message: AI driven credit underwriting and collections are emerging as likely disruptors in banking, changing how lending decisions are made and how repayment is managed.
Banks have largely stabilized their balance sheets by moving away from industrial stress and focusing on retail lending, easing the NPA crisis. But the unintended fallout is a squeeze on credit flow to smaller businesses and firms that create jobs, raising concerns about growth and employment as credit shifts to consumers instead.
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The government has extended interest subvention benefits to micro and small iron and steel enterprises exporting 167 specified product categories. The move is designed to improve their access to credit amid global pressures and builds on an earlier export support package. Medium-sized units, however, will not qualify for this particular subsidy.
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