Bank of Maharashtra Seeks Opportunities in MSME Space | SupportBiz

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Bank of Maharashtra Seeks Opportunities in MSME Space

Raj Narayan's picture
Tags: PSU Banks
Bank of Maharashtra looks to MSMEs
New chairman Sunil Muhnot says banks could collectively do a lot to improve funding to the MSME sector

Mumbai, November 18: Public sector State Bank of Maharasthra would be diversifying into new areas as part of its next phase of growth and plans to tap into new areas and segments of industry to improve its assets and manage its liabilities, a senior official has said.

An article published in the Business Standard quotes the new Chairman and Managing Director of the Bank Sunil Muhnot to state that the bank has a good exposure in the prescribed priority sectors like agriculture and small and medium business. 

He says banks could do quite a bit to improve lending to the MSMEs and suggested that the financial system should revamp its approach to this segment of the industry. "Banks, non-banking financial companies and micro finance institutions should use their entire strength for this segment," he said in the article (Read the Full Article). 

Elaborating that up to 15% of the bank's portfolio was related to the small enterprises, Muhnot said banks should standardize their products and delivery model so that customers can decide whom to approach for funds. 

He said technology should be used for appraisals and rating as in the case with SIDBI. "The capabilities of the MSMEs should be developed so that they are reaady for funding. These initiatives will help increase the banks' penetration into this sector," he was quoted as saying.