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₹1.62 lakh cr credit by Indian textile-apparel industry as of Dec 2020
09 Jun '21
3 min read
Pic: Shutterstock
The total credit availed by the Indian textile and apparel sector as of December 2020 stood at₹1.62 lakh crore, a year-on-year (YoY) decline of nearly 20 per cent, according to the third edition of Industry Spotlight released today by Indian credit bureau CRIF High Mark and Small Industries Development Bank of India (SIDBI). This was because of the suspension of manufacturing activities following lockdown in March 2020.
The number of active loans by volume in the sector stood at 4.26 lakh as of December 2020, the report says.
CRIF is a global group headquartered in Europe and has been ranked among the top 50 fintech companies globally by IDC.
The industry witnessed 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, nearly 8 per cent lower than NPAs in December 2019, a press release from the companies said.
Over the years, apparels have contributed to a majority share of exports, followed by home textiles and fabric. However, export credit as of December 2020 stands 25 per cent lower YoY, largely attributable to a decline in exports due to the pandemic, the report says.
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.
At the state level, Maharashtra has the largest share of the credit portfolio at 25 per cent of the credit book to the sector.
The report emphasizes that the top thirteen regions rich in textile and apparel manufacturing accounted for 80 per cent of the credit portfolio of the sector as of December 2020. Nearly all states have districts manufacturing textiles and apparel, with several credit active units.
Public sector banks are dominant lenders in providing finance to the sector with a share of 62.61 per cent in volume as of December 2020. The share of private banks, NBFCs and foreign banks were 23.49 per cent, 8.66 per cent and 1.41 per cent, respectively. By value, private banks have the largest share at 40.54 per cent followed by public sector banks with 36.59 per cent, foreign banks comprising of 9.14 per cent and NBFCs with 8.47 per cent as of December 2020.
The number of active loans by volume in the sector stood at 4.26 lakh as of December 2020, the report says.
CRIF is a global group headquartered in Europe and has been ranked among the top 50 fintech companies globally by IDC.
The industry witnessed 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, nearly 8 per cent lower than NPAs in December 2019, a press release from the companies said.
Over the years, apparels have contributed to a majority share of exports, followed by home textiles and fabric. However, export credit as of December 2020 stands 25 per cent lower YoY, largely attributable to a decline in exports due to the pandemic, the report says.
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.
At the state level, Maharashtra has the largest share of the credit portfolio at 25 per cent of the credit book to the sector.
The report emphasizes that the top thirteen regions rich in textile and apparel manufacturing accounted for 80 per cent of the credit portfolio of the sector as of December 2020. Nearly all states have districts manufacturing textiles and apparel, with several credit active units.
Public sector banks are dominant lenders in providing finance to the sector with a share of 62.61 per cent in volume as of December 2020. The share of private banks, NBFCs and foreign banks were 23.49 per cent, 8.66 per cent and 1.41 per cent, respectively. By value, private banks have the largest share at 40.54 per cent followed by public sector banks with 36.59 per cent, foreign banks comprising of 9.14 per cent and NBFCs with 8.47 per cent as of December 2020.
Fibre2Fashion News Desk (DS)
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