In what can potentially raise concerns over concentration of finance, a credit information company's data has revealed that nearly two-thirds of micro, small and medium enterprises' loan originations in FY22 came from only three states -- Maharashtra, Tamil Nadu and Delhi.

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The top 10 states account for 90 per cent of the originations value in 2021-22, while Maharashtra, Tamil Nadu and Delhi make up for 64 per cent of the total originations value in FY22, the data released by CRIF High Mark said.

It can be noted that policymakers have identified the Micro, Small and Medium Enterprise (MSME) sector as one of the main engines taking the economy ahead, and have taken efforts at deepening finance in the sector through a slew of initiatives, including specially designed schemes for the pandemic.

Maharashtra also features among the top three states by origination volume along with Tamil Nadu and Uttar Pradesh, and also has the largest MSME loan portfolio concentration, it said.

According to the data, the top five districts for MSME advances are Mumbai, Mumbai Suburban, Chennai, Kolkata and Bengaluru, and collectively make up for 56 per cent of the total originations value in FY22. From an originations by volume perspective, the top five districts are Bengaluru, Mumbai, Pune, Ahmedabad, and Lucknow, it said.

From a loan-loss perspective for lenders in the segment, Gujarat, Haryana and Rajasthan are the most troublesome with 1.7 per cent of advances being unpaid for over 180 days, it added.

The overall disbursements to the MSMEs grew 5 per cent to Rs 37.29 lakh crore in FY22 when compared with the year-ago period, but is more than double of what was achieved by the industry in FY20, it said. The average ticket size of a MSME loan stood at Rs 72.4 lakh in FY22.

Small borrower segment had the highest market share by originations value in FY22 at 28.5 per cent, followed by Mudra segment at 26.2 per cent, it said.

Private banks now account for nearly 70 per cent of the MSME loans by value as against just 33 per cent in FY20, which is attributable largely to the increase in average ticket sizes, it said.