Indian Bank aims to grow MSME portfolio riding on mentoring programme

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December 10, 2020 7:00 AM

The bank’s MSME portfolio is of Rs 65,176 crore (17.34 lakh accounts), which is 18% of total advances portfolio. During the first half of 2020-21, the MSME portfolio had grown by 14.73%.

In October, non-food credit growth decelerated to 5.6 per cent compared to a growth of 8.3 per cent in the same month of the previous year.In October, non-food credit growth decelerated to 5.6 per cent compared to a growth of 8.3 per cent in the same month of the previous year.

Indian Bank is aiming to grow its MSME portfolio riding on its small entrepreneurship mentoring programme, christened MSME Prerana, as it will enable small businesses to access bank credit more easily.

The bank’s MSME portfolio is of Rs 65,176 crore (17.34 lakh accounts), which is 18% of total advances portfolio. During the first half of 2020-21, the MSME portfolio had grown by 14.73%.

Under the Prerana, online training sessions for MSMEs are being conducted to train them in basics of accounting, maintenance of books of accounts, government and bank schemes. Training programmes are being arranged in vernacular languages for the benefit of MSMEs. The bank has entered into tie-ups with Poornatha & Co, a entrepreneurial development organisation and Michigan Academy for Developing Entrepreneurs for this purpose.

The lender has recently started its fourth batch of MSME Prerana for entrepreneurs in Tamil Nadu. MSME Prerana, a first-of-its-kind initiative by a bank for the MSME sector, was launched by Union finance minister Nirmala Sitharaman on October 6, 2020.

Padmaja Chunduru, MD & CEO, said: “MSME Prerana programme received very good response from MSME entrepreneurs and participation of more women entrepreneurs is overwhelming. The aim is to equip them of necessary skills to professionally handle volatile and uncertain situations and build confidence in them for a viable and sustainable business growth.”

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