RBI holds 39th Empowered Committee meeting on MSMEs

Excelsior Correspondent
SRINAGAR, Mar 28: The 39th Empowered Committee (EC) meeting on Micro and Small and Medium Enterprises (MSMEs) was conducted by RBI 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 KS and Regional Head, Canara Bank, were among the participants.
It was noted in the meeting 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 meeting also noted that 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.
Earlier in his welcome address, Ashok Mattu highlighted the huge potential of MSME sector in employment generation and its contribution to the overall economic growth of the country and stressed upon the banks to ensure timely and adequate lending to this sector and also to promptly handhold the entrepreneurs wherever and 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 scheme was liberalized. He urged all the stakeholders to join hands and ensure that the credit needs of this sector do not remain unmet from the formal banking sector.
Chairmen of RRBs functioning in the State, State heads of OBC, ICICI bank, SBI and industry representatives, Javaid Tenga, president, KCCI and Afaq Qadri, executive member, FCIK also attended the meeting.

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