Banks role in building MSME stressed

PUDUCHERRY: Banks have the challenging task of building a robust Micro, Small and Medium Enterprises (MSME)  portfolio by rapidly expanding the client base, said M Ram Kumar,  general manager, Canara Bank,here on Friday.Speaking at a seminar on credit rating, funding methods and options available for MSME organised by the Confederation of Indian Industries (CII), Kumar said MSME plays a significant role in the economy in terms of balanced and sustainable growth, employment generation, development of entrepreneurial skills and contribution to export earnings. The sector accounts for 8 per cent of GDP, 45 per cent of manufactured output and 40 per cent of exports. It promises jobs to 60 million people producing 8000 commodities annually for the domestic and international market. He emphasized on how banks have a long-standing commitment to MSME sector and Canara Bank has been taking initiatives to increase credit earnings. V Renganathan, branch manager, NSIC, Puducherry, spoke on rating scheme for small scale industries and how the rating scheme would encourage SSI sector to improve its contribution to the economy by increasing their productivity, how a good rating would enhance their acceptability in the market and make access to credit quicker, cheaper and thus help in economising the cost of credit.  Besides, the rating would help buyers take decisions on options of sourcing material for small scale units.