The new branch has come up at Udyambagh in Belgaum
The Karnataka Vikas Grameen Bank (KVGB) will set up a branch exclusively for the Micro, Small and Medium Enterprises (MSME).
KVGB chairman C. Sambasiva Reddy told The Hindu that the new KVGB's branch exclusively for MSME will be formally inaugurated at Udyambagh in Belgaum on Wednesday. However, it started started functioning on an experimental basis seven days ago. Mr. Reddy claimed that KVGB is first regional rural bank in the country to open an exclusive branch for MSMEs..
Mr. Reddy said KVGB proposed to established more of its branches across north Karnataka, and the bank authorities have begun the process of identifying places for the purpose.
On the KVGB branch for MSMEs, he said unlike other branches it will exclusively deal with transactions related to MSMEs. All MSME-related banking services will be made available under the singe window system here. Besides, the branch will have expert manager and other trained staff who will train young and enthusiastic persons interested to tap the potential in MSMEs. They will provide guidance to selected beneficiaries and train them in matters of the formalities to be completed in the government level to set up small enterprises. The bank officers will also coordinate with the officials of the district industry centres to help the persons investing in the MSMEs, he said.
Mr. Sambasiva Reddy said that KVGB will soon identify persons with potential to achieve success in the MSME sector. The bank authorities will coordinate with other agencies and experts to conduct regular training, awareness and motivation workshops for persons interested to invest in MSMEs.
Mr. Reddy opined that north Karnataka region, which was predominantly an agrarian belt, had huge potential in the MSME sector but capital generation was lacking. But even those who want to invest in MSMEs do not have funds and so KVGB will disburse loans amounting to Rs. 665 crore this fiscal for the benefit of people who want to invest in the sector.
Besides this, KVGB will strive to help people in 100 villages under the bank's jurisdiction get solar power to illuminate their respective villages. Thurst will also be on using solar energy in its branches and so far 112 branches have been converted into solar powered units, Mr. Reddy said.
To encourage people to set up MSMEs, loans amounting to Rs. 665 cr. to be disbursed KVGB to provide solar power to 100 villages in the bank's jurisdiction under its credit scheme
To encourage people to set up MSMEs, loans amounting to Rs. 665 cr. to be disbursed
KVGB to provide solar power to 100 villages in the bank's jurisdiction under its credit scheme