New Delhi, Aug 1 (KNN) Signature of reputed Chartered Accountants (CAs) or CA firms boosts banks’ confidence, said Bandhan Bank CEO Shekhar Ghosh adding that some MSMEs approaching banks through agents is not the “right way”.

Ghosh advised the MSME units in the country to select best chartered accountants, saying "It is not your cost, but an investment."

"The signature of a reputed CA or CA firm boosts banks' confidence. I have also seen MSME units approach banks through agents. That is not the right way. Banks are not comfortable with agents. Connect to the banks directly and you will receive all possible support," Ghosh recently said while addressing the MSMEs, senior government officials and bank executives at the CII-organised MSME FinFest.

Ghosh pointed that the MSME sector contributes about 6 per cent to GDP, contributes 40 per cent of gross industrial output and 45 per cent of total exports and is second largest employer after agriculture.

"It is well known that a few large corporate houses are the basic reason behind the high NPA rate. As a protective measure banks are not lending to the corporates but the MSMEs are getting badly hit by this," Ghosh said.

Suggesting the MSME members to change their mindset in the current scenario, Ghosh said "Try to avoid the assistance of brokers. They may not be of much help in the longer run.

"Better, if you engage a chartered accountant rather than counting on a broker. Engaging a chartered account is not cost enhancement, but making a good investment. It is a chartered account who will really help you in adhering to all sorts of compliance norms."