TIHCL cautions bankers about danger of ballooning NPA particularly in MSMEs after March 2020 if adequate measures not taken
Hyderabad, Sept 23 (KNN) In a specially convened meeting with select bankers last week , Jayesh Ranjan, Principal Secretary, Telangana, explained to the bankers the need for reducing NPA in the state in MSME sector particularly in the context of stimulation package announced by the union Finance minister recently.
He cautioned the bankers the danger of ballooning NPA after March 2020 if adequate measures are not taken on continuing basis in coming six months.
He recalled the circumstances under which the state had to address the issues of the sickness in MSME sector. As many as 10% of MSEs became sick because of lack of inadequate power, power holidays etc. that crippled the industry leading to dharna by them.
During the last few years, the state has come out of this situation and even at a higher cost every enterprise gets continues power supply at uniform voltage. In such altered scenarios, when investments are attracted to the state in defense, aerospace, food processing etc the role of banks and TIHCL assumes critical importance.
In this context, he dwelt at length the necessity for separate institutional mechanism to address the stress in micro and small manufacturing for which purpose Telangana Industrial Health Clinic Ltd (TIHCL) was setup by the State Government two years ago.
Three influencing factors while setting up institution according to him are 1. Co-Financing 2. Contribution of equity by Government of India that could not come about and 3. Bank’s participation in equity.
B Yerram Raju, Advisor, explained the concept, functionality, strengths of the Board, good governance, transparency and accountability to stakeholders of TIHCL. He also mentioned that the company has become digital with customized software application I-Health, developed by Microsoft. M.Sanjaya, MD explained various products and services offered by TIHCL.
Zonal Head of SBI, Andhra Bank, Corporation Bank, Bank of India, Canara Bank and Indian Bank participated in the meeting. SBI exchanged MOU with TIHCL in the presence of Principal Secretary.
Jayesh Ranjan, Principal secretary requested the banks to contact their headquarters for entering MOU with TIHCL mean time he suggested that they may refer cases of stressed enterprises SMA1- 2 for to the TIHCL for appropriate solution.
The meeting ended with thanks to all the Bankers and Principal Secretary.