Kumar underlines the importance of funding MSMEs and SMEs
Artificial Intelligence, Algorithms, Prediction Analysis are the future of lending norms for banks to follow and as such it is important to move on from Rating criteria for grant of loans, UCO Bank Executive Director Ajay Vyas told the business community during a virtual interaction with PHD Chamber of Commerce and Industry on 23 Dec 2020.
Also, there is a need to reduce Turn Around Time (TAT) for grant of loans, he said during a panel discussion on ‘Redefining Corporate Financing in New Normal’.
Banks will focus on cashflow-based lending in times to come and this has already been started by SBI, according to Vyas.
The banks have fully supported the Aatmanirbhar Bharat wherein around Rs.2 lakh crores were disbursed to support the Startups including Small & Medium Enterprises (SMEs), added Thekepat Keshav Kumar, DMD, Commercial Credit Group-II (North& South), State Bank of India.
He also underlined the importance of funding MSMEs and SMEs for business growth.
But Kumar clarified that it was wrong to say that banks were lending to NBFCs and indirectly to the Real Estate Companies as very few NBFCs have stakes in the Real Estate sector.
PHDCCI President Sanjay Aggarwal felt that banks should be allowed to issue alternate Bank Guarantees which will take away difficulties of business entities.
“Those who deserve and are in dire need of funds need to be granted loans. The checks and balances may however be put on more stringently. It is important to promote businesses,” he stressed.
Important concerns were raised at the webinar on whether corporates with a single bad credit could be allowed loans; if in case of Real Estate companies, the analysis of companies for loans is done on a project basis or company’s track record basis; what is the deal way of financing a project – debt or equity; among others. #banking #financing #debts #loans #investment #economy #manufacturing /fiinews.com
