Bank SME credit schemes galore; are there enough takers?
Updated: Jul 25, 2013 04:52:01pm
From Esther Suhasini
New Delhi, Jul 25 (KNN) Most public sector banks have specialised units and schemes in place to cater to the MSME sector, especially in the industrial clusters. But how effective are their schemes? Have they succeeded in providing critical assistance to the small and medium units?
On its part, the government is keen to double credit flow to the MSME sector during the next five years. Towards this, the Reserve Bank of India has directed all scheduled commercial banks to achieve 20 per cent year on year credit growth to the sector.
However, the moot point is: if there is sufficient awareness about the schemes; and have the banks stood by their promise of providing quick and easy access to credit to the MSME sector?
According to reports, Canara Bank, State Bank of Mysore, Vijaya Bank and Syndicate Bank amongst others, in keeping with the RBI mandate are offering “innovative” schemes to the small units which are considered the driving force of the economy.
There are mixed responses to the functioning of these schemes. While there are some good words in certain quarters, some other entrepreneurs seem unhappy.
About the various banks’ initiatives, President Mysore Industries Association said they were quite effective. “We are well informed about their schemes. They organise customers’ meets and conduct awareness programmes through the industry associations. In fact the banks are after us, telling us about their loans and credit facilities.”
Secretary of Madurai Industries Association, M S Sampath is quite unhappy with marketing of credit schemes of some nationalised banks.
“There is insufficient awareness. Every district has an industry association and the banks could easily pass on the information to the association and have them post it on their monthly bulletin. But they haven’t done so. Nor do the banks have enough field officers to cater to us as a result of which most industries do not know about the schemes,” he lamented.
Canara Bank’s offering to the sector are the SME Sulab Centres. They are basically centralised loan processing units which cut down the loan clearance time.
“Canara Banks’ SME Sulab Centres have a pan India presence and we certainly have a lot of takers. We operate through our branch network in both rural and industrial clusters and there is a special marketing cell,” said Manager of a SME Sulab Centre in Bengaluru.
On the other hand, the State Bank of Mysore is known for its schemes that fund both large and MSME units. Recently the bank launched ‘MyBank Centenary SME bonanza to provide MSEs with advances. Over the first quarter of this year, the bank has sanctioned loans worth Rs 139 crore.
The bank now intends to add an additional two dozen specialised branches to the existing half dozen this year. Significantly, it has special credit-processing cells to cater to SMEs – four in Karnataka and five outside the state with special officers to hasten sanction of proposals.
Further, with a special hand-holding mechanism in place for MSMEs in distress, the bank has 417 accounts so far for an amount totalling Rs 150 crore.
Meanwhile, the Vijaya Bank has various products for the MSME market such as V-Vyapaar, V-Restaurant, V-Doctor, V-Vehicle and V-Dhaanaya. In 2012-13 the Bank conducted 137 MSME melas in various parts of the country.
Further special efforts are made to discuss credit requirements and inform them about their schemes – Credit Guarantee scheme, TUFS subsidy, etc. Vijaya Bank has 11 exclusive cells and 2012-13 saw the sanctioning of 457 loans worth Rs 1871 crore through the cells.
Syndicate Bank has 69 MSME branches to date, having lent Rs 16,428 crore as at March 31, 2013. (KNN)
Feedback: newsdesk@knnindia.co.in
New Delhi, Jul 25 (KNN) Most public sector banks have specialised units and schemes in place to cater to the MSME sector, especially in the industrial clusters. But how effective are their schemes? Have they succeeded in providing critical assistance to the small and medium units?
On its part, the government is keen to double credit flow to the MSME sector during the next five years. Towards this, the Reserve Bank of India has directed all scheduled commercial banks to achieve 20 per cent year on year credit growth to the sector.
However, the moot point is: if there is sufficient awareness about the schemes; and have the banks stood by their promise of providing quick and easy access to credit to the MSME sector?
According to reports, Canara Bank, State Bank of Mysore, Vijaya Bank and Syndicate Bank amongst others, in keeping with the RBI mandate are offering “innovative” schemes to the small units which are considered the driving force of the economy.
There are mixed responses to the functioning of these schemes. While there are some good words in certain quarters, some other entrepreneurs seem unhappy.
About the various banks’ initiatives, President Mysore Industries Association said they were quite effective. “We are well informed about their schemes. They organise customers’ meets and conduct awareness programmes through the industry associations. In fact the banks are after us, telling us about their loans and credit facilities.”
Secretary of Madurai Industries Association, M S Sampath is quite unhappy with marketing of credit schemes of some nationalised banks.
“There is insufficient awareness. Every district has an industry association and the banks could easily pass on the information to the association and have them post it on their monthly bulletin. But they haven’t done so. Nor do the banks have enough field officers to cater to us as a result of which most industries do not know about the schemes,” he lamented.
Canara Bank’s offering to the sector are the SME Sulab Centres. They are basically centralised loan processing units which cut down the loan clearance time.
“Canara Banks’ SME Sulab Centres have a pan India presence and we certainly have a lot of takers. We operate through our branch network in both rural and industrial clusters and there is a special marketing cell,” said Manager of a SME Sulab Centre in Bengaluru.
On the other hand, the State Bank of Mysore is known for its schemes that fund both large and MSME units. Recently the bank launched ‘MyBank Centenary SME bonanza to provide MSEs with advances. Over the first quarter of this year, the bank has sanctioned loans worth Rs 139 crore.
The bank now intends to add an additional two dozen specialised branches to the existing half dozen this year. Significantly, it has special credit-processing cells to cater to SMEs – four in Karnataka and five outside the state with special officers to hasten sanction of proposals.
Further, with a special hand-holding mechanism in place for MSMEs in distress, the bank has 417 accounts so far for an amount totalling Rs 150 crore.
Meanwhile, the Vijaya Bank has various products for the MSME market such as V-Vyapaar, V-Restaurant, V-Doctor, V-Vehicle and V-Dhaanaya. In 2012-13 the Bank conducted 137 MSME melas in various parts of the country.
Further special efforts are made to discuss credit requirements and inform them about their schemes – Credit Guarantee scheme, TUFS subsidy, etc. Vijaya Bank has 11 exclusive cells and 2012-13 saw the sanctioning of 457 loans worth Rs 1871 crore through the cells.
Syndicate Bank has 69 MSME branches to date, having lent Rs 16,428 crore as at March 31, 2013. (KNN)
Feedback: newsdesk@knnindia.co.in
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