Home Business RBI Holds 39th Empowered Committee Meeting on MSMEs at Srinagar

RBI Holds 39th Empowered Committee Meeting on MSMEs at Srinagar

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Srinagar, Mar 28, CNS :The 39th Empowered Committee (EC) meeting on Micro and Small and Medium Enterprises (MSMEs) in the State of Jammu & Kashmir was held on March 27, 2018 at Srinagar. The meeting was chaired by Ashok Kumar Mattu, General Manager, RBI, Jammu. Vagish Chander Sharma, Executive President, JKB, Vinay,Sawhney, Vice President, JKB, B S Raina, DGM, Punjab National Bank, R. Vardharajan, HDFC bank, Pradeep K.S, Regional head, Canara bank, Chairmen of RRBs functioning in the state of J&K, state heads of OBC, ICICI bank, SBI and industry representatives Shri Javaid Tenga, President KCCI, SHriAfaq Qadri, Executive Member, FCIK etc. were also some of the participants.

While extending a formal welcome, Ashok Mattu highlighted the huge potential of MSME sector in employment generation and its contribution to the overall economic growth of the country and therefore it was incumbent upon the banks to ensure timely and adequate lending to this sector and also to promptly handhold the entrepreneurs wherever & whenever considered necessary.He also laid emphasis that banks needed to make special efforts in ensuring CGTMSE coverage in all eligible loan cases particularly when the extent of coverage and cost of cover under the schemewas liberalized. He urged all the stakeholders to join hands and ensure that the credit needs of this sector did not remain unmet from the formal banking sector. He stressed the need for creation of sufficient awareness among the entrepreneurs and urged the trade bodies, MSME, SIDCO to organize awareness programmes periodically and help create a conducive investment climate in the State. While reviewing performance of the individual banks in lending to MSME sector during the quarter ended December 31, 2017, he explained that the main purpose of holding the EC meetings was to facilitate an accelerated growth of MSMEs in the State and also to remove various bottlenecks which hindered the smooth flow of credit to the sector. Besides, such a Forum also afforded an opportunity of direct communications/interactions between various stakeholders i.e. Government, bankers, regulators, industry associations etc. so that the MSME sector could get a focussed attention and necessary guidance, support from all concerned stakeholders for its smooth functioning and progress.

The meeting noted that a credit flow to the MSME sector in the State increased from Rs.10359.02 crore as on December 31, 2016 to Rs.12569.31 crore as on December 31, 2017, registering an increase of 21.34% percent year on year basis. The number of accounts which stood at 294525 units as on December 31, 2016 had increased to 350329 units as on December 31, 2017, registering 18.95% growth year on year basis. The banks collectively surpassed mandated target of 10% growth in number of accounts as well as 20%growth in credit dispensation on YoY basis.Banks whose performance was not satisfactory were advised to augment the lending to this sector on priority.