Bengaluru, Nov 10 : The government has set the target for all scheduled commercial banks and NBFCs for providing additional MSME credit of Rs 1.54 lakh crore in the current financial year (FY25).

The banks and NBFCs should aim at total credit growth of Rs 5.75 lakh crore, Rs. 6.21 lakh crore and Rs 7 lakh crore to MSMEs in the financial year 2024-25, 2025-26 and 2026-27 respectively, according to Finance Minister Nirmala Sitharaman.

At the 'National MSME Cluster Outreach' programme here, organised jointly by the Department of Financial Services (DFS), Ministry of Finance, and Small Industries Development Bank of India (SIDBI), the minister underscored the importance of MSMEs in India's economic development, particularly their role in innovation, job creation, and contributing to the country's self-reliance.

The Finance Minister also interacted with entrepreneurs, providing insights on how the government and financial institutions can further support their growth and sustainability. Sitharaman said that banks need to walk extra mile for enhancing credit to MSME sector.

Jitan Ram Manjhi, Union Minister for MSMEs, highlighted the government's initiatives aimed at bolstering the MSME sector and urged all the banks to focus towards extending more credit to small enterprises in rural areas.

Around 150 MSME clusters were connected virtually for the launch with senior bank officials being present in each of these clusters.

FM Sitharaman also virtually inaugurated six new SIDBI branches in Karnataka, expanding SIDBI's reach and financial assistance to MSMEs in these clusters.

She also inaugurated four Nari Shakti Branches of Union Bank of India at Bengaluru, Chennai, Jaipur and Vishakhapatnam, with the goal of empowering women entrepreneurs and the Learning Centre of Canara Bank at Bagaluru, Bengaluru.

FM Sitharaman also distributed sanction letters to 11 MSME customers of SIDBI, aggregating to Rs. 25.75 crore and 2 sanction letters to MSME customers of Nari Shakti Branch of Union Bank of India aggregating Rs 11 crore.

During the event, SIDBI signed a memorandum of understanding (MoU) with the Peenya Industries Association strengthening the collaboration to support MSMEs through capacity building, credit facilities, and knowledge-sharing.

/IANS