SMEs low on priority of banks: CRISIL
Hotline: 1800 102 2007
X
Search Business Opportunities
2011-01-25

SMEs low on priority of banks: CRISIL

The small and medium enterprises (SME) sector is low on the agenda of the country’s banks as a study by ratings agency Crisil Ltd has found that the bulk of the expansion in these companies had to be

The small and medium enterprises (SME) sector is low on the agenda of the country’s banks as a study by ratings agency Crisil Ltd has found that the bulk of the expansion in these companies had to be funded by the promoters themselves. While credit facilities by banks to the SME sector rose continuously from Rs.127,000 crore in 2006-07 to Rs.369,866 crore in February 2010, according to the Reserve Bank of India (RBI), the Crisil study, which looked at a sample of 2,000 SMEs between the financial years 2006-07 and 2008-09, presented a slightly unexpected picture.

It estimated that Indian banks funded on an average around 60% of the sector’s incremental working capital and long-term borrowing needs, representing a gap of Rs.50,000 crore of untapped opportunity.

This shortfall was funded, overwhelmingly, by the promoters’ own funds, apart from internal accrual, which was the next most oft-resorted avenue to financing. The third route was to lean on suppliers to extend short term—and often informal—credit agreements, the data revealed.

Related opportunities
  • Men's clothing
    T-Store is a wing of Relion Industries in the field..
    Locations looking for expansion Gujarat
    Establishment year 2010
    Franchising Launch Date 2018
    Investment size Rs. 5lac - 10lac
    Space required 50
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Ahmedabad Gujarat
  • Cosmetics & Beauty Product Stores
    Gulnare Skincare offers skin care solutions for the socially conscious...
    Locations looking for expansion Haryana
    Establishment year 2015
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 270
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Faridabad Haryana
  • Quick Service Restaurants
    About: Global QSR burger giant Carl's Jr. started from a humble..
    Locations looking for expansion Delhi
    Establishment year 1950
    Franchising Launch Date 2017
    Investment size Rs. 1 Cr. - 2 Cr
    Space required 300
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Web based/Online Platform
    About:   INDIA’S LEADING INNOVATIVE VEHICLE TRACKING PLATFORM:-   iWay Track is ..
    Locations looking for expansion Maharashtra
    Establishment year 2010
    Franchising Launch Date 2017
    Investment size Rs. 5lac - 10lac
    Space required 0
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Mumbai City Maharashtra
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities

Free Advice - Ask Our Experts