(MENAFN- KNN India) Canara Bank registers increased MSME lending post demonetization phase
New Delhi, Aug 23 (KNN) In the aftermath of the demonetization of the higher value currency notes last year, the Canara bank has been able to facilitate flow of credit to the different sectors of the Micro, Small and Medium Enterprises (MSMEs) in the country.
The bank has maintained special focus towards MSME lending along with lending to the retail after the bank received increased cash deposits during the demonetization era.
Rakesh Sharma, MD and CEO of Canara Bank in a press interview informed that the funds received by bank after November have been channelized towards the credit need of the MSMEs.
He further said that sectors including foods processing, infrastructure and textile continued to face the credit crunch despite flow of credit. The prime reason for this was that many of the units involved in this sector were in a state of debt, along with excess capacity. Also the basic metal and metal producing industry faced similar situations.
Sharma however said that the demand of credit from these sectors is likely to fine tune soon as the Centre along with Reserve Bank of India are planning reformative steps.
These steps would help in stabilizing the economy as well as lead to increase in the overall confidence of the investor. (KNN/ DA)
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