Hotline: 1800 102 2007
Hotline: 1800 102 2007
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

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 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
  • Education Supplies
    About Us: Air-hostess & Pilot Training School was started in the..
    Locations looking for expansion Punjab
    Establishment year 2011
    Franchising Launch Date 2012
    Investment size Rs. 20lac - 30lac
    Space required 1200
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Jalandhar Punjab
  • Car Wash / Ceramic Coating / Detailing
    About Us: Auto Herb - a proven business opportunity in Car..
    Locations looking for expansion Maharashtra
    Establishment year 2014
    Franchising Launch Date 2015
    Investment size Rs. 10lac - 20lac
    Space required 1000
    Franchise Outlets 20-50
    Franchise Type Unit, Multiunit
    Headquater Pune Maharashtra
  • Quick Service Restaurants
    About Dumpling MomoPartner with the emerging Tibetan snack brand of..
    Locations looking for expansion West Bengal
    Establishment year 2014
    Franchising Launch Date 2015
    Investment size Rs. 10lac - 20lac
    Space required 100 - 700 Sq.ft
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Kolkata West Bengal
  • Language Schools
    About Us: The British Institute of Engineering Technology (I) Pvt Ltd (BIET), London..
    Locations looking for expansion West bengal
    Establishment year 1950
    Franchising Launch Date 1992
    Investment size Rs. 2lac - 5lac
    Space required 500
    Franchise Outlets 50-100
    Franchise Type Unit
    Headquater Amherst street West bengal
Insta-Subscribe to
The Franchising World
Magazine
tfw-80x109
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
email
mobile
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

pincode
ads ads ads ads