Kerala

Uncertainty grips MSMEs: Kerala Bank CEO

‘Old opportunities may disappear and new ones will emerge’

Micro, small and medium enterprises (MSMEs) in the State are facing more than shortage of funds. There is so much disruption on the scene that entrepreneurs are gripped by a sense of uncertainty. Some of the old opportunities may disappear and new ones would emerge, P.S. Rajan, chief executive officer of Kerala State Cooperative Bank (Kerala Bank) said on Sunday.

Entrepreneur confidence had been shaken by the way the market unfolded with COVID-19 pandemic, he said about the way enterprises are changing character. For example, he said, online marketing and door delivery of goods and services were growing in strength. The old concept of hotels and eateries in this sense was rapidly changing.

Priority area

He said Kerala Bank too had MSMEs as a priority area lending at a rate at which the bank did not make a loss or profit. It may be recalled that the State government had come out with the ‘Vyavasaya Bhadratha’ scheme to support MSMEs in the wake of the pandemic. Agencies such as Kerala Financial Corporation and Kerala State Industrial Development Corporation too are extending a hand to MSMEs.

Mr. Rajan said that at the Central level, there are missions trying to address the funds issue for MSMEs. Programmes such as the ₹3-lakh-crore emergency credit line and the grievance redressal platform CHAMPIONS (Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength) would help, he added. Meanwhile, the Kerala Bank held its first customer meet in Kochi last week with Mr. Rajan inaugurating the programme from the bank headquarters in Thiruvananthapuram in a video conference. The customer meeting featured a question and answer session for investors.

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Printable version | Jul 8, 2020 3:02:41 PM | https://www.thehindu.com/news/national/kerala/uncertainty-grips-msmes-says-kerala-bank-chief/article31939146.ece

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