In the MSME loan landscape, lending to the micro-segment, where credit is less than Rs 1 crore, showed the highest growth in the March quarter, while loans to medium-sized businesses contracted. Public sector banks led in MSME loan originations in the micro segment in Q4 FY23, with a 23% YoY growth in origination value. In contrast, the 'small' segment (credit exposure between Rs 1 crore and Rs 10 crore) grew by just 1%, and the 'medium' segment (Rs 10-50 crore credit exposure) saw a 19% decline. The total commercial credit exposure was Rs 27.7 lakh crore, with new loans of Rs 2,41,000 crore, a slight decrease from Q1 FY22. With increasing demand, improved credit performance, and promising economic growth prospects, it's a reasonable time for lenders to expand their MSME credit portfolios in India, as the sector is expected to continue growing, reaching 750 lakh MSME corporate entities by FY23.