Mumbai, Mar 9 (KNN) Union MSME Minister Kalraj Mihra has asked the banks to increase lending to the sector as it is the largest employment generating sector and the growth engine of the economy.

Mishra also asked the banks to further lend towards helping SC (scheduled class) and ST (scheduled tribes) segment.

He was addressing at the women's entrepreneurs convention on Wednesday.

He said the government was providing support through SIDBI and efforts are being taken to prevent MSME units from turning sick.

The government's action plan includes revival and rehabilitation facilities and setting up of corrective action committees. These can help small traders, businessman and even vegetable sellers, he maintained. 

He added that women have been majority beneficiaries of many measures.

Meanwhile, speaking at the same event, State Bank of India (SBI) chief Arundhati Bhattacharya said one of the biggest problem faced by the micro, small and medium enterprises (MSME) sector is lack of equity.

She said, "One of the biggest problems our SMEs face is that they have no equity. This is what our MSMEs lacks. They need the strength of equity or capital in their business and that is very low in India."

Currently, about 55 percent of SBI's balance sheet comprises retail and MSME segment.

"Nearly, 45 percent is [devoted] to large corporates. I have no problem at all if I am able to tilt that more in favour of retail; I would love to do that," the SBI chief said.

SBI Chairman further said, "The large sector also needs support from the bank. But that does not mean that we (banks) are not there for you (retail segment)."

Currently, SBI has an outstanding Rs 1,60,000 crore lent to the MSME sector. "This is year alone we have done more than Rs 10,000 crore. We wish to do around Rs 16,000 crore of mudra loans by the end of this year," the SBI chief said.