Finance Minister Eatala Rajender on Friday called upon banks to extend sufficient credit to micro, small and medium enterprises.
Urging banks to refrain from under-financing the enterprises given their contribution to the economy as well as in creating job opportunities, he underscored the need for a change in mindset among bankers. The Minister was inaugurating a two-day Bankers Conclave on ‘Financial opportunities for the MSME sector’ organised by the Federation of Telangana and Andhra Pradesh Chambers of Commerce and Industry on its premises here.
More disbursements to the MSMEs would also help Telangana government achieve the objective of a broad-based and geographically well spread growth, he said. The State government, he pointed out, had initiated several measures to facilitate industrial development, including making available power round the clock, setting aside 10% of the water in the upcoming water grid for industries.
Stating that “concentrated economy leads to poverty”, he said most of the deposits in banks were by middle or lower class households. It is the responsibility of the banks to extend credit to such people.
Banks, he added, should have a separate department and team of officers for animal husbandry, agriculture and industries. They could also institute a system where officials would visit the enterprises every month and advise them.
Chairman of FTAPCCI’s Banking, Finance and Insurance Committee Prem Chand Kankaria said, despite MSMEs playing a vital role in economic development, they faced challenges in access to credit. Banks tend to view loans –which often are small ticket – to MSMEs as high risk and insist on collateral.
FTAPCCI president Gowra Srinivas said the Conclave was a platform to create awareness of financial schemes among MSMEs and providing opportunity to banks, financial institutions to showcase their products.
