Credit and Finance for MSMEs: Chennai-based Indian Bank on Monday stated it entered a memorandum of understanding with the Society for Innovation and Entrepreneurship (SINE), IIT Bombay for extending credit assistance facility to MSMEs and startups. As per the MoU, SINE would recognize MSMEs and startups based on their credentials and previous expertise and will refer the list of such members who need economic help to the bank. The initiative is a element of Indian Bank’s scheme for MSMEs and startups to recognize their study efforts on the back of economic assistance and backed by incubation facility from SINE. The bank stated it will supply loans up to Rs 50 crores for working capital specifications of companies or acquire of machinery, gear, and so forth.
“SINE, IIT Bombay is the forerunner in setting up joint R&D with industries and supporting start-up incubation. SINE, IIT Bombay provides support to the MSME sector by providing joint research and development arrangements and technical and financial support for incubation and acceleration of high-end technology products,” the bank stated in a statement. Indian Bank had earlier MSME Prerana programme to assistance MSME entrepreneurs via talent development and capacity creating workshops in neighborhood languages. Online coaching sessions for MSMEs are performed below the scheme to train companies in terms of accounting.
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Indian Bank had reported a 220 per cent jump in its net profit to Rs 1,182 crore in Q1FY22 in comparison to Rs 369 crore in the year-ago period. Its asset high-quality had also enhanced with a decline in gross non-performing assets (GNPA) by 121 bps to 9.69 per cent from 10.9 per cent. The net NPA ratio for the bank was 3.47 per cent, down 29 bps from 3.76 per cent in June 2020 ended quarter.
Overall, gross bank credit deployed to micro and tiny enterprises (MSEs) had continued to contract in May – for the straight second month in FY22. The outstanding as of May 2021 stood at Rs 10.27 lakh crore, registering a adverse 3.6 per cent year-on-year (YoY) development from Rs 10.65 lakh crore as of May 2020, most up-to-date information from the Reserve Bank of India (RBI) showed. The adverse YoY development had additional enhanced from minus 2.2 per cent in April 2021 that followed the lowest development of 2.5 per cent recorded in March 2021 considering that its prior deepest plunge to 1.5 per cent in May 2020.