SBI Chairman C S Setty Suggests Repository To Smoothen Loans For MSMEs

As part of his address on ‘Capital For Growth’ at Samvad - A Symposium on Securities Market, C S Setty, Chairman of the State Bank of India has pushed for setting up a repository to formalise and collate information related to the credit-worthiness of Micro, Small and Medium Enterprises (MSMEs) in the country. Speaking on the importance of MSMEs in the country’s economy, Setty listed how MSMEs account for a third of India’s GDP, 40% of its exports and were a major employment generator. Despite this, he said, MSMEs lacked proper credit because of a dearth and an asymmetry in credit information and lack of proper financial records. The price risk this created, he added, would be addressed by setting up a repository of information and a proper mechanism to track use of funds by MSMEs by market infrastructure institutions.