In what could be a big relief for small and medium businesses, the National Small Industries Corporation (NSIC) has inked an agreement with State Bank of India to facilitate easy credit to SMEs, PTI reports.
Speaking on the sidelines of an event where NSIC and Mauritius-based Small and Medium Enterprise Development Authority (SMEDA) entered into MoU, Chairman-cum-Managing Director of NSIC H P Kumar said the deal would further simplify and quicker the lending process with SBI.
"Recently, we have signed an agreement with SBI to facilitate easy credit to MSMEs at a reasonable rate and we hope it will really help these units," Kumar was quoted as saying to PTI.
NSIC has signed similar agreements with a number of private and public financial institutions including Union Bank of India, Axis Bank, HSBC, Central Bank of India and YES Bank. Kumar said many banks are coming forward to sign such deals as they are eager to add more small and medium businesses to their customer list. "We are also trying to sign this pact with the remaining banks so that small units get easy credit flow in every part of the country," Kumar said.
Meanwhile, NSIC has registered a record business performance during the financial year 2012-13 as it paid a dividend for Rs.12,47 crore, equivalent to 20 percent of the Net Profit for the year 2012-13 to the Minister of MSME, Shri K. H. Muniyappa. “The slowdown of Indian Economy is due to global economy, which has been affecting the performance of MSME sector as well. However, MSME sector in India has managed to show the growth of more than 10%, which proves the resilience of the sector,” Muniyappa said.