Amit Mitra (left) with SBI managing director A. Krishna Kumar in Calcutta on Tuesday. A Telegraph picture
Calcutta, Jan. 14: Bengal industry minister Amit Mitra today urged banks to lend more to the MSME (micro, small and medium enterprises) sector.
“The banking sector should increase the extent of assistance to the MSME sector in the state,” Mitra said at the inauguration of the State Bank of India’s specialised branch for small and medium sector.
He said during 2012-13, the sector had got advances amounting to Rs 4,200 crore, while it jumped to Rs 8,200 crore in the first half of 2013-14, a rise of more than 100 per cent.
“The banks should increase this by 150 per cent for the full 2013-14 fiscal,” he said.
This will help the MSMEs to engage themselves in the inclusion process, he added.
Mitra said 92 per cent of the manufacturing sector in the country were unorganised and a big chunk of it was constituted by the MSMEs.
SBI asset worry
The State Bank of India today expressed apprehension that its asset quality might deteriorate further because of the contraction in factory output.
“The contraction in factory output as indicated by falling IIP (index of industrial production) will put additional pressure on banks, including the SBI, on the asset quality,” managing director A. Krishna Kumar said.
He indicated that the stress on manufacturing sector and mid-level corporate houses would continue and this would definitely put pressure on the asset quality.