Business Daily from THE HINDU group of publications
Tuesday, Nov 03, 2009
ePaper | Mobile/PDA Version | Audio | Blogs
Business Daily from THE HINDU group of publications Tuesday, Nov 03, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
|
|
|
|
|
Home Page
-
SSI Money & Banking - Credit Market Rating raises credit flows to small, micro units Roudra Bhattacharya New Delhi, Nov. 2 The credit and performance rating scheme of the Government for micro and small enterprises (MSEs) is beginning to work. Credit disbursement to these units has been increasing at a steady pace, as banks are more willing to lend to enterprises that have been evaluated on a standardised basis by independent agencies. According to the National Small Industries Corporation (NSIC), in the first half of the fiscal 2009, about 3,487 enterprises availed themselves of the scheme. For the whole of 2008-09 fiscal, 5,011 enterprises had got themselves rated. Big help“The scheme helps MSEs in two ways – by establishing their credit worthiness to borrow at liberal terms and enhancing their ability to procure orders from foreign buyers,” said Mr H.P. Kumar, Chairman, NSIC. He added that at this rate, the number of enterprises availing themselves of the scheme should show a growth of more than 50 per cent by the end of the fiscal. The growing numbers are reflected in the books of several major banks. Punjab National Bank has announced a 64 per cent growth in SME lending at Rs 31,030 crore at the end of September, 2009, from Rs 18,948 crore during the same previous quarter. Bank of Maharashtra posted a 34.5 per cent increase to Rs 3,308.07 crore in its lending to the sector for the quarter ended September 30, 2009. For BoM, SME loans constitute 9.05 per cent of its gross credit portfolio. A senior official of Delhi-based Oriental Bank of Commerce said that SME lending had increased 20 per cent at Rs 7,750 crore in the second quarter. Although the latest figures for State Bank of India are not available, the country’s largest bank had disbursed a total of Rs 93,808 crore to the sector as of March 2009. “Over the last four years, the average increase in annual lending by banks to the sector is around 26 per cent. For some, however, the figure is above 30 per cent,” said Mr Kumar. The rating scheme was launched in April, 2005. Canara Bank, Crisil in pact for rating MSMEs ICRA sees potential in SME rating ‘There is huge opportunity for credit rating business’ More Stories on : SSI | Credit Market | Credit Rating
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2009, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|