New Delhi, May 23, 2014: Easy access to organised finance facility at competitive interest rates is up grabs for micro, small and medium enterprise (MSME) with the signing of MoU between FICCI-CMSME and IDBI. According to study by IFC in November 2012 titled “MSME Finance in India”, despite the increase in financing to MSMEs in recent years, there is still a considerable institutional formal finance gap of INR 20.9 trillion ($418 billion). Also according to FICCI and Grant Thornton survey regulatory compliance and finance availability remained often cited issues adversely impacting business environment for Indian MSMEs.
FICCI avers that the objective of the partnership with IDBI is to attend industry’s concerns pertaining to financing. The FICCI-CMSME and IDBI partnership will grant best pricing offered at the relevant time by IDBI including concession of 100 bps and charging of processing fee as low as 0.10% to the proposals referred by FICCI-CMSME.
On Friday Dr A Didar Singh, Secretary General, FICCI and FICCI-CMSME and B. K. Batra, Deputy Managing Director, IDBI signed the MoU at the Federation House, New Delhi.
Announcing the partnership, Dr Singh said, “timely availability of credit at the right cost is the key expectation of industry from their banks. While large corporate manage to get the attention of bankers, often the smaller companies have a disadvantage in sourcing credit at right cost and right time. MSME sector is a backbone of economy and banks have an important role in propelling growth of this important segment. Hence, this tie up is towards that direction.”
Sanjay Bhatia, President, FICCI CSMME said, “MSMEs are known as highest employment generator after agriculture hence, it is imperative to provide an ecosystem that could facilitate their financing, marketing, technological, infrastructural needs and make them more competitive. Easy & faster financing options could provide a trigger for faster, inclusive growth for MSMEs.”
…MSME sector is a backbone of economy and banks have an important role in propelling growth of this important segment. FICCI CMSME – IDBI tie up is towards that direction..” – Dr A Didar Singh
B. K. Batra, Deputy Managing Director, IDBI said “This MOU with FICCI would be a win-win situation for both the organizations for meeting the credit requirements of the MSME sector in a timely and cost effective manner. The MOU would help IDBI Bank in further increasing its reach to the MSME Sector. IDBI Bank is focused on expanding its lending to this sector in view of the fact that the MSME is a key driver of Indian economy in terms of contribution to GDP, employment and exports. IDBI Bank will continue to play a leading and active role in promoting development of MSME sector in the country”.
Other present during the ceremony were Sanjay Bhatia, President, FICCI-CMSME and Managing Director, Hindustan Tins Works Ltd; R Narayan, Vice-President, FICCI-CMSME and CEO & Founder, Power2SME; Bipin Kabra, Chairman, Finance Group, FICCI-CMSME and President & CFO, Religare Finvest Ltd; S. K. V. Srinivasan, Executive Director, IDBI; Yashpal Gupta, CGM, IDBI; Ajay Sharma, CGM, IDBI.
FICCI-CMSME, established in December 2013, is an affiliated body under the umbrella of the Federation of Indian Chambers of Commerce and Industry (FICCI), an apex Chamber of Commerce & Industry of India, with a vision to empower Indian Micro Small and Medium Enterprises (MSMEs) and build their competitiveness. FICCI-CMSME is a dedicated effort by FICCI to provide a one stop organization to work closely with the MSME sector. FICCI-CMSME play an active role in generating holistic grid to connect MSMEs with mentors, incubators and accelerators and assist MSME’s through capacity building programs and services.
IDBI Bank is the youngest, new generation public sector universal bank that rides on a cutting edge Core Banking Information Technology platform. This enables the Bank to offer personalized banking and financial solutions to its clients through its 1407 branches and 2414 ATMs. The Bank had an aggregate balance sheet size of Rs.3, 28,997 crore and total business of Rs.4,33,460 crore as on March 31, 2014. It is one of the fastest moving Public Sector Banks. IDBI Bank has, over one decade of its existence, emerged as the “most preferred bank” and a one-stop solution provider.