Page 32 - Banking Finance January 2019

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Mana e ent Ban ech nsur ech A on the s ajor as a h h v rant and d na c sector of the nd an cono
serv ces after tness n a oo n the a ents se ent over ast f ve decades he cred t f o n MS sector has
cred t or end n has een on route to fo o red t or een ro n s o he ro th of cred t f o to MS
end n th aunch n of ore than n ech sector n ast t o ears as ven n e o a e
a ternat ve end n co an es as one of the fastest
ro n sectors of the ast ear But otent a of end n ear o o o nt MS cre it
art cu ar n MS sector s st ar e unta ed cco nt t tan ing a er cent
i ion R i ion o
Micro & S a nter ri e MS Sector

M cro S a nter r ses MS has een no n as

ac one and an econo t a s an ortant ro e n
not on rov d n ar e e o ent o ortun t es and Source RBI A u Re or
ncreas n e orts ut a so n ro ot n ndustr a at on of
rura and ac ard areas t s a so re arded as But the ercenta e of cred t f o n MS sector s o er as
co e entar to ar e ndustr es as anc ar un ts co ared to other sectors So there s sco e of MS end n
n co n ears
nd a has ore than on MS s th an un et de t
de and of S on es te the r ar e nu ers
R S rve on MS re it
MS sector has een underserved or unserved for end n
RB has a so conducted a co rehens ve surve th
the an s and f nanc a nst tut ons MS sector has
feed ac fro MSM s and an ranches across
t ca suffered fro a ac of f nanc a data for cred t
states dur n an e to e a ne
rof n and o ca ta re u re ents MS s have a so een
a hether the f o of cred t to MSM s as cond t oned
cons dered su o t a orro ers as serv n the roves
de and s de rather than su s de factors and
un rof ta e for an s due to the r s a s e cost of cred t
de ver ac of f nanc a data and cred t h stor a n t ho effect ve the var ous overn ent sche es ere
d ff cu t to erfor r s assess ents n ro ot n n MSM sector
Around of s contr uted to MSM s ut the
he resu ts nd cate that f a f r s a read n o erat on for
su of cred t nes s d s ro ort onate he ajor
ore than ears t s ess e to have for a f nance as
contr utors to the ro th of th s sector nc ude a ar e
a ajor source of f nanc n Serv ce sector MSM f r s have
a ount of un et de and for oans fro MSM s th a
h her chance of hav n for a fund n as an ortant
a of rou h S on n cred t su and a
source as co ared to anufactur n MSM f r s urther
s n f cant under an ed and ne to an o u at on h ch
ar er s ed and ed u s ed MSM f r s ere found to
es at the heart of the nd an n ech o ortun t
have h her chance of hav n for a fund n as ortant
source than s a er MSM s th a turnover of ess than Rs
Re erve an o n ia nn a Re ort
a hs

he surve a so c ear sho ed ot of sco e of MS end n
As er RB Annua Re ort MS sector has e er ed
h ch has not een fu catered an s and other f nanc a
nst tut ons
Sco e o in ec MS en ing

cono c ana s s su ests that the ne t etus for ro th
n nd a s econo co e fro cro s a ed u
s e enter r ses MSM s and startu s

A s e of ro ra s announced n recent ears have fostered
a ore favora e us ness env ron ent for f nanc a

2 | 2019 | JANUARY | AN N NAN