The total amount of credit availed by the textile and apparel sector as of December 2020 stood at Rs. 1.62 lakh crore, which witnessed a Y-o-Y decline of nearly 20 per cent.
This is due to the suspension of manufacturing activities in the immediate aftermath of the COVID-19 lockdown in March 2020. The number of active loans (volume) in the sector stood at 4.26 lakh, as of December 2020.
It has been claimed by a report launched by Small Industries Development Bank of India (SIDBI) and CRIF High Mark. This is the third edition report which analyses the ‘Indian Textile and Apparels’ industry.
SIDBI is the principal financial institution engaged in the promotion, financing and development of MSMEs, and CRIF High Mark is a leading Indian credit bureau.
The report also says that the industry observed a quarterly decline in Non-Performing Assets (NPAs) over the last two years, from 29.59 per cent in September 2018 to 15.98 per cent in September 2020.
NPAs in December 2020 increased by 0.94 per cent, which is nearly 8 per cent lower than NPAs in December 2019.
With 95 per cent of the overall credit by volume of the sector concentrated in micro, small and medium segment of borrowers, the industry has a presence of close to 5 lakh borrowers as of December 2020.
Nearly all states have districts manufacturing textiles and apparels, having several credit active units. Some districts, such as Mumbai and Surat, have more than Rs. 10,000 crore credit portfolios, as of December 2020.
“Despite the pandemic, the top thirteen regions active in textiles and apparels manufacturing constituted 80 per cent of the credit portfolio as of December 2020,” said Navin Chandani, MD & CEO, CRIF India.