State Bank of India gives Rs 3,000 crore to MSMEs in a day
PrintListen to this Article
Rajnish Kumar, chairman of SBI, the country's largest lender, on Tuesday said the public sector bank in a single day disbursed about Rs 3,000 crore in total to 22,000 units in the MSME sector.
"A scheme like the guarantee scheme for SMEs, it has capital implications for the banks. In a way, this Rs 3 trillion means Rs 30,000 crore further capitalisation also has happened indirectly for the banks," Kumar said at the CII annual session.
Kumar said there is a fine line between risk aversion and risk prudence, seeking to clear the air on the opinion that risk aversion was pervasive in the banking system. "But I want to ask, is the risk aversion from the lenders or the borrowers?" he said.
In what appeared to be an effort to dispel the notion that parking funds with the Reserve Bank of India implies banks are risk averse, he said, "If I get Rs 2 lakh crore in deposits in two months, even if I'm a very efficient bank, I cannot disburse so much within two months."
Addressing the issue of fund-starved non-banking finance companies (NBFCs), Kumar said, "We are definitely supporting all the NBFCs with whom the bank (SBI) has a satisfactory record of dealing."
Kumar said that reports painting a doomsday scenario for banks with rising non-performing assets is overstated, but added that there is uncertainty over how the next six months will shape up for the sector. #casansaar (Source - Economic Times)
Category : MSME | Comments : 0 | Hits : 529
The Department of Expenditure, Ministry of Finance, has launched the scheme, “Vivad se Vishwas I – Relief to MSMEs” for providing relief to Micro, Small and Medium Enterprises (MSMEs) for COVID-19 period. The scheme was announced in the Union Budget 2023-24 by Union Finance Minister Smt. Nirmala Sitharaman. In Para 66 of the Union Budget speech, Smt. Sitharaman had announced:- “In cases of failure by MSMEs to execute contracts during the COVID period...
Government has extended the Credit Guarantee Scheme for Subordinate Debt upto 31st of March next year. Ministry of Micro, Small and Medium Enterprises said, the government had announced creation of Distressed Assets Fund - Subordinate Debt for Stressed MSMEs’ on 13th May last year under the Atma Nirbhar Bharat Package. The scheme was launched to provide credit facility through lending institutions to the promoters of stressed Micro, Small and Medium Enterprises. In order to ...
Emergency Credit Line Guarantee Scheme (ECLGS) since its launch, has extended relief to over 1.15 crore Micro, Small and Medium Enterprises (MSMEs) and businesses. It has provided support to eligible borrowers in meeting their operational liabilities and restarting their businesses in the wake of disruptions caused by the COVID-19 pandemic. As on 24th September 2021, loans sanctioned have crossed Rs. 2.86 lakh crore under the Scheme and out of total guarantees issued, about 95% of the guarant...
Union Minister for MSMEs Shri Narayan Rane virtually inaugurated the India Export Initiative and IndiaXports 2021 Portal of India SME Forum in New Delhi today. He was accompanied by MoS Shri Bhanu Pratap Singh Verma and senior officers of the Ministry. Speaking on the occasion, Shri Rane expressed confidence of India driving the export growth with the help of MSMEs and achieving the target of 400 Billion USD by this fiscal and achieving the challenging target of 1 trillion in exports by 2027....
Finance Minister said in view of Covid pandemic it has made it mandatory to clear all the dues of MSMEs within a stipulated time of 45 days to provide relief to such entities. In reply to a question in the Lok Sabha, Finance Minister Nirmala Sitharaman said all the dues of MSMEs pending at the Centre are being cleared under this stipulated time frame. On the clearance of GST related issues she said the GST council has to take a call on pending GST. The minister also said to provid...
Comments