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ARTICLE
SMALL SIZE
ADVANCES BY
A BANKER
B anks are the heart of financial system. Banks In the Globalized scenario of banking, besides making
play an important role in the economic develop- profit, social responsibility is also one of the prime
ment of the country. Dr. A.P.J. Abdul Kalam's agenda of commercial banks. Social banking is " bank-
vision of Indian Banks is that " All Banks should ing for the poor rather than poor banking ".
be a common man's Bank, to offer all financial
products and services to all its customers under one roof, To create long term stakeholder value..
at affordable cost in a fair and transparent manner."
We should redefine the metric for effective lending,
The ultimate aim of the lending activity by Banks viz., prioritize loans to enterprises which will generate
is : more employment" is the quote from "Gyan Sangam"
gathering of Bankers and Top level policy makers in
To improve the Bottom Line business i.e. PROFIT. Pune.
To construct a broadly diversified portfolio of bank loans To achieve the above mission, "Focus on Small Size Ad-
that maximizes return and minimizes default risk over vances".
the long run.
Importance of Small Size Advances:
Sustainable development to increase the opportuni-
ties on a longer time horizon without striving for the From country's point of view:
short term maximization of financial profits and return
on investment. Small businesses are core to economic competitiveness.
They are job creators. They are also instrumental to our
About the author innovation economy. To drive the economic competitive-
ness, the focus must turn to micro economic strategies that
P Jayalakshmi Kumar help a critical part of our economy, small businesses and
Chief Manager entrepreneurs, grow their business and create jobs.
Union Bank of India Staff College
Bannerghatta Road, Bengaluru Fostering a dynamic micro, small and medium enterprise
BANKING FINANCE | JULY | 2016 | 39
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