On the occasion of conclusion of Central Bank of India’s centenary year celebrations a conference with  the theme “Empowering MSE’s for Inclusive Growth-Strategies and Initiatives” was held in Mumbai  on Tuesday.

Delivering his address, MV Tanksale, Chairman and Managing Director, Central Bank of India and  speaking on  issues and challenges faced by banks in providing timely credit to SME’s said “banks must ask if  credit provided to SME  is adequate and timely? do bank’s only provide credit or do they also partner with SME. On entrepreneurs part Tanksale said they must ask themselvesif they are transparent in coming back to banks with their problems and seeking genuine solutions. He pointed out that despite being highly priced NBFC’s are preferred entities of credit by SME’ for availing term loans.

Tanksale said that the role of MSME’s is not only crucial for economic growth but also the key lever for taking  benefits of economic growth to our teeming millions in an inclusive manner. Speaking on Central Bank of India’s focus to push SME’s he said the  bank has an exclusive SME vertical and  also  identified branches to serve SME clusters. “It has a centralized processed centre for addressing  timely decisions for SME’s” he added.

Dr KC  Chakrabarthy,Deputy Governor, Reserve Bank of  India emphasised on  appropriate skill development of human resources  and use of technology in delivering immense demographic dividend of the country while delivering his keynote address and said  that  financial inclusion was a priority for RBI . “By the end of this financial year all villages with population of 1000 people will have banking facility” he said.

“Small and Medium Entrepreneurs which remained dormant in the pre-independence era are now emerging out of slumber since the last 60 years This will ensure higher economic growth on the face of global economic crisis and also contribute to national goal of inclusive growth” RBI Deputy Governor said .

Pointing to  available statistics Chakarbarthy  added that only 5.18 percent of registered and unregistered units have availed of finance from  institutional sources including banks and NBFC’s ,2.05percent  get finance from non institutional sources while majority i.e. 92.77percent  have no finance  are dependent on state or take it from friends and relatives.

“Since small  entrepreneurs  do not understand financial management, debt –equity ratio etc,it was necessary for banks to provide  consultancy services for managing  their complete finances through a package of services for which banks could charge them” he said and advised entrepreneurs not to neglect cash flows to avoid banking problems, develop their management corresponding to growth of projects and become members of Credit Information Bureau.

The conference attended by more than 500 entrepreneurs included panelists like Vijayalakshmi R.Iyer, Executive Director, Central Bank of India, Dr. K. Ramakrishnan,Chief Executive,Indian Banks’ Association,C. D. Srinivasan ,CGM - RPCD, Reserve Bank of India, Arun Thukral,MD, Credit Information Bureau (India) Limited,Lakshman Gugulothu,CEO,BSE, SME Exchange, Chandrakant Salunkhe,President,SME Chamber of India and others.