 "Donald Trump tariff impact: Banks likely to tighten lending to MSMEs")
Banks may adopt a risk-averse approach and slow down fresh lending to export-oriented micro, small, and medium enterprises (MSMEs) to avoid stress in their portfolios after the US imposed a 25 per cent tariff on goods imported from India.
Lenders may also ask for more collateral when extending credit to this segment, they added.
The asset quality of the MSME sector has remained stable so far. MSME lending outpaced credit growth in the retail and services sectors in FY25, rising by 14.1 per cent amid an overall decline in bank credit.
A senior official at a state-owned bank, requesting not
