'MSMEs Need To Be Given A Push’ | SupportBiz


'MSMEs Need To Be Given A Push’

Bangalore: The Micro, Small and Medium Enterprises (MSME) need a push as the manufacturing sector including the infrastructure and services sector is a key generator of jobs, felt Ashok Reddy, chairman of the Karnataka Vikas Grameena Bank (KVGB).

Inaugurating a meeting involving MSME entrepreneurs, organised by KVGB at Dharwad, he said the bank wants to be an important player in the growth story of the region, especially in North Karnataka, reported Business Standard.

“The bank is working on development initiatives for the benefit of MSMEs. Credit disbursement to MSME rose from Rs 404.69 crore last year to Rs 617.61 crore as on March 31, 2014, recording a growth of 52.61 per cent. The bank hopes to improve upon last year’s achievement with a handsome margin,” he said.

He also advised budding entrepreneurs to come with a dream and announced that the bank will not refuse credit to viable and transparent enterprises. It will also take steps to provide necessary training through Rudsetis and SIRDs.

Station director of All India Radio Channamallikarjuna Bellakki suggested that the banks that should do their own assessment before advancing loans without depending on the credit rating agencies. Highlighting the importance of MSMEs, he said, the MSME sector is the best vehicle for inclusive growth, to create local demand and consumption, and also fight global competition.

General Manager Suryakant Ganga said, although the government and the banking industry had taken initiatives to boost the MSME sector, there is a huge reluctance and low awareness amongst enterprises to take advantage of the same.

KVGB is for catering to the needs of MSMEs, analyse their problems, help them face challenges and solve their issues. MSMEs should make the best use of these facilities, he added.

Lajapat Rai, CMD, Air tech company, urged enterprises to follow good governance and financial management policies to avail of easy financing by financial institutions.