Ensure adequate credit flow to MSMEs, they are in genuine need of funds: Anurag Thakur

The MSME sector, which is the backbone of the economy, needs a lot of support from the banking industry, said Thakur

Press Trust of India November 12, 2019 09:04:04 IST
Ensure adequate credit flow to MSMEs, they are in genuine need of funds: Anurag Thakur
  • Despite many measures announced by successive governments, small businesses continue to face funding issues, as banks don't chase them as they do with large companies

  • The MSME sector, which is the backbone of the economy, needs a lot of support from the banking industry, said Thakur

  • Banks should also focus on genuine customers who need financial support to grow their businesses and the MSME sector

Mumbai: Junior finance minister Anurag Thakur on Monday asked banks to ensure smooth flow of credit to MSMEs which are in genuine need of funds.

It can be noted that despite many measures announced by successive governments, small businesses continue to face funding issues, as banks don't chase them as they do with large companies for a variety of reasons.

"Banks should also focus on genuine customers who need financial support to grow their businesses and the MSME sector, which is the backbone of our economy, needs a lot of support from the banking industry," he said at the 101st foundation day celebrations of the state-run Union Bank of India on Monday evening.

Ensure adequate credit flow to MSMEs they are in genuine need of funds Anurag Thakur

Representative image. AFP.

Listing out the slew of reforms taken in the banking sector, he said, "we have adopted the four R approach to resolve the balance sheet issues of banks: recognising, resolving and recovering, recapitalising and reforms".

As a result, bad loans have come down from Rs 10.36 lakh crore in March 2018 to Rs 9.38 lakh crore in March 2019 system-wide, while for public sector banks, the same has come down to Rs 7.9 lakh crore from Rs 8.96 lakh crore. He also asked banks to genuine commercial decisions without fear of witch-hunt later.

Speaking on the occasion, Union Bank managing director Rajkiran Rai G said, through the hundred years journey, the bank has been serving national priorities.

The bank launched three new products—Union Sampurna—a technology to provide one-stop solution for farm sector; e-way bills and an ATM geo-locator.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Backing RBI on NPAs, Finance Minister Arun Jaitley says minimising bad loans alone will ensure credit flow
Business

Backing RBI on NPAs, Finance Minister Arun Jaitley says minimising bad loans alone will ensure credit flow

Relations between the RBI and the Finance Ministry have soured in the last month after the North Block started consultations under the never-used Section 7 of the RBI Act

State Bank of India, Punjab National Bank put 15 non-performing assets worth Rs 1,063 crore for sale
Business

State Bank of India, Punjab National Bank put 15 non-performing assets worth Rs 1,063 crore for sale

Leading public sector lenders State Bank of India (SBI) and Punjab National Bank (PNB) have put their 15 non-performing assets worth Rs 1,063 crore for sale

MSME sector presents an additional $70 bn lending opportunity to banks, says report
Business

MSME sector presents an additional $70 bn lending opportunity to banks, says report

MSMEs account for over $55 billion of lending currently, there is still a huge gap that can be addressed by financial institutions in the near term