MSMEs need to be looked from both perspectives- investment as well as turnover: Yes Bank
New Delhi, May 9 (KNN) When it comes to defining Micro, Small and Medium Enterprises (MSMEs), MSMEs need to be looked from the perspectives of both - investment in plant and machinery as well as turnover, said an official from Yes Bank.
While speaking with KNN India on the sidelines of a seminar on ‘Definition of MSMEs’ here, Group Executive Vice President, Small Enterprises Banking, Yes Bank, Vikas Arora said “According to me, the correct parameter to define MSMEs is to club both the parameters i.e. investment in plant & machinery and turnover.”
He explained, some of the companies might have large investment in the plant and machinery but they would have smaller turnover, similarly some would have smaller plant and machinery but would have larger turnover depending on the business model, therefore it is important to club both the parameter while defining MSMEs.
“It is ultimately all about what kind of investment an enterprise is bringing in and also the top line turnover”, he added.
When asked about MSME financing, he said “We are completely focused on providing capital to the rightful borrowers.”
Somewhere, MSMEs have also need to realign themselves with the new regulations especially GST. It is not just for themselves but also for the banks to enable to take a decision, he pointed.
Further, he mentioned that MSMEs need to bring in lot of compliances which doesn’t require lot of cost also and bank is more than happy to lend them.
Pahle India Foundation (PIF) in collaboration with YES Bank organized a seminar on ‘Definition of MSMEs’ as part of monthly seminar series at India International Centre. (KNN/YV)