Bankers advise entrepreneurs to be transparent with their problems


Geetanjali Minhas | December 22, 2011

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.



Other News

BMC commissioner Chahal conferred with hon. doctorate

BMC commissioner and administrator Iqbal Singh Chahal has been conferred with a Honorary Doctor of Science Degree (honoris causa) by Guru Nanak Dev University in Amritsar, Punjab. Chahal was conferred the degree during the 48th convocation of the University in Amritsar at the hands of Punjab

Sebi to have two-track approach on ESG

Securities and Exchange Board of India (Sebi) aims to use a two-track approach on environmental social and corporate governance (ESG). Addressing a conference on ‘ESG for Atmanirbhar Bharat` in Mumbai, Sebi chairperson Madhabi Puri Buch said that that there should not be a single carbo

Accuracy more important than speed in news: Anurag Thakur

Presenting authentic information is the prime responsibility of media and that facts should be properly checked before they are put in the public domain, union minister of information and broadcasting Anurag Thakur has said. “While speed with which the information is transmitted is imp

FM concludes pre-budget consultations

Union minister for finance and corporate affairs Nirmala Sitharaman has concluded the pre-budget consultation meetings for Budget 2023-24 that were held from November 21 to 28 in the virtual mode. More than 110 invitees representing seven stakeholder groups participated in eight meetings sch

Coal production rises by 18% to 448 MT

The total coal production in the country stands at 448 million tonnes (MT) for the month of October 2022 which is 18% higher than the production of the corresponding period of last year. The growth of coal production from Coal India Ltd (CIL) is also more than 17%. The ministry of coal said

How to execute large-scale social impact projects

The number of social innovators and entrepreneurs has considerably increased recently in India. The idea of social entrepreneurship, which aspires to provide novel solutions for the world`s most critical social issues, is now receiving more attention. Challenges like overworked healthcare,

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Current Issue


Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter