New Delhi, Dec 25 (.) Odisha’s small business credit portfolio expanded at a faster pace than the national average in FY25, underlining the state’s growing role as a key economic engine in eastern India, according to the latest Small Business Spotlight report by CRIF High Mark and SIDBI.
The report shows that Odisha’s small business credit outstanding rose from Rs 0.67 lakh crore in September 2023 to Rs 0.96 lakh crore in September 2025, registering a 17.2 per cent year-on-year growth in FY25, compared with the pan-India growth of 16.2 per cent. The number of active small business loan accounts in the state also increased to 23.3 lakh, marking a 13.8 per cent YoY rise.
Sole proprietors continued to dominate the credit landscape, accounting for nearly 80 per cent of the borrower base in Odisha, broadly in line with national trends. Within this, the fastest growth was seen among “sole proprietors with entity presence,” reflecting increasing formalisation as small entrepreneurs transition to registered business structures.
Public sector banks remained the largest lenders in the state with over 42 per cent share of the small business credit portfolio, significantly higher than the national average. However, non-banking financial companies (NBFCs) expanded their footprint rapidly, especially in under-penetrated and rural regions, driven by small-ticket loans.
The report also highlighted the strong performance of aspirational districts in Odisha. Credit growth in these districts exceeded 22 per cent YoY, outpacing both the state and national averages, while maintaining relatively lower delinquency levels. This points to improving credit access and better asset quality in traditionally underdeveloped regions.
On the risk front, Odisha’s portfolio quality remained broadly stable, with the share of very low-risk borrowers among small enterprises rising from about 40 per cent in September 2023 to over 47 per cent in September 2025. While overall delinquency levels edged up marginally, they remained comparable with, or better than, national averages in key lender categories.
Industry-wise, manufacturing continued to account for a significant share of credit, supported by Odisha’s mineral-based industries, while services recorded faster growth, reflecting diversification into trade, logistics, IT, and allied activities.
The findings suggest that policy initiatives, expanding lender participation, and rising formalisation are together strengthening Odisha’s small business ecosystem, positioning the state for sustained credit-led growth in the coming years. . VK SQ .