Bank of Maharashtra suggests MSME Min to set up independent panels to identify right candidates for lending

New Delhi, Apr 27 (KNN) The Bank of Maharashtra chief has suggested that the Ministry of MSME should consider setting up independent committees to identify right candidates for lending.

Sushil Muhnot, CMD of Bank of Maharashtra, said, "Bankers can be questioned on lending to units not doing well. In this situation, the Ministry could consider forming independent committees to support bankers.”

He said this while addressing an Assocham event recently where the Union MSME Minister Kalraj Mishra said, "Banks have been told to lend without worry, but they are still not forthcoming because they fear NPAs,” said Mishra, adding that the Ministry was pulling out all stops to ease credit flow to the sector."

Muhnot also pressed for the need of professional guidance to MSMEs in preparing reports before they approach banks, and ensure bridging of the “information gap” between them and the bankers.

He also urged for an enhanced corpus with the Credit Guarantee Fund, to deal with the problem of delayed loan repayments. (KNN Bureau)