MSMEs have been among the worst impacted segments in the pandemic, and many have found it difficult to sustain themselves due to limited capital, labour shortage and distribution reach. They play a significant role in the economy with about 30 per cent share in the GDP, and are also the largest employers in the country.
RBI data show that bank credit to industry fell by 0.3 per cent in June 2021, compared to a year ago. In contrast, micro and small industries rose by 6.4 per cent in June versus a contraction of 2.9 per cent a year ago. Credit to medium industries registered a robust growth of 54.6 per cent in June.
Third wave
Government initiatives such as ECLGS have helped, but concerns about a third wave and business disruptions remain.
The Finance Minister has also announced that banks would be doing a credit outreach programme soon. In this situation, how can banks boost MSME growth further? Is there enough credit appetite? How has the loan restructuring scheme helped the sector? Apart from liquidity, what else does the sector need to thrive one again?
These issues and more will be discussed at a webinar on ‘How Banks Can Boost MSME Growth During the Pandemic’, presented by State Bank of India and BusinessLine at 4 pm on August 31. Ketan Gaikwad, Managing Director and CEO, Receivable Exchange of India; KE Raghunathan, convener, Consortium of Indian Associations; and B Sankar, Chief General Manager-SME and SCF, State Bank of India, will be part of the discussion moderated by Surabhi, Deputy Editor, BusinessLine .
To watch the webinar, register at https:// bit.ly/3jnxAzW or scan the QR code.
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