Piyush Goyal Highlights Rising Role Of Public Sector Banks In MSME Financing

(MENAFN- KNN India) New Delhi, Dec 23 (KNN) Commerce and Industry Minister Piyush Goyal on Monday said it was encouraging to see public sector banks (PSBs) competing on an equal footing with private and foreign banks, highlighting their growing role in supporting India's economic expansion.

Addressing the MSME Banking Excellence Awards in New Delhi, the Minister said PSBs have emerged as strong and competitive institutions, playing a key role in financing growth.

He underlined the importance of the banking system in supporting micro, small and medium enterprises (MSMEs), noting that access to timely and adequate credit has been central to the growth of small entrepreneurs.

Banks, he said, have expanded institutional credit to MSMEs, including borrowers who previously relied on informal sources, enabling business creation, expansion and improved livelihoods.

Congratulating the award winners, he expressed confidence that MSMEs, startups, incubators and young entrepreneurs would continue to receive strong banking support, supplemented by government schemes.

He referred to initiatives such as the Mudra loan scheme, noting that nearly 70 per cent of Mudra loans have been extended to women entrepreneurs, and the credit guarantee measures introduced during the COVID-19 pandemic, under which the government provided guarantees for MSME loans without additional collateral.

He also cited the PM SVANidhi scheme, under which street vendors receive small loans that increase with repayment performance, helping them reduce dependence on informal moneylenders.

Goyal said banks' efforts reflected the government's approach of providing“maximum support to micro, small and medium enterprises”.

Banks, he said, reported profits of around Rs 3 lakh crore last year, indicating their capacity to lend, while MSME credit has grown at a compound annual rate of about 14 per cent in recent years.

Calling on banks to lend responsibly and proactively, the Minister urged faster and more transparent loan processing, adequate availability of capital for business needs, and active guidance to MSMEs in accessing government schemes and capital markets.

(KNN Bureau)

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