SME Artha 2022 | Video: Dhrubashish Bhattacharya tells how Bank of Baroda is moving away from traditional lending | The Financial Express

SME Artha 2022 | Video: Dhrubashish Bhattacharya tells how Bank of Baroda is moving away from traditional lending

Credit and finance for MSMEs: Talking to FE Aspire, Dhrubashish Bhattacharya who heads the MSME banking at Bank of Baroda and also spearheads its co-lending programme explains the bank’s approach to MSME lending.

Dhrubashish Bhattacharya tells how Bank of Baroda is moving away from traditional MSME lending

Credit and finance for MSMEs: Lack of credit access to MSMEs has encouraged lenders such as Bank of Baroda over the past few years to acknowledge the cash flow-based approach to disburse credit to MSMEs through alternative data sources such as UPI transactions, income tax returns, GST returns, bank statements, CIBIL score, point-of-sale data, and more. Buy Now Pay Later, invoice-based financing, supply chain financing, co-lending, etc., are some of the collateral-free credit options for small borrowers depending upon their requirements and based on the cash flow data of their businesses. 

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Talking to FE Aspire at SME Artha 2022 event, Dhrubashish Bhattacharya who heads the MSME banking at reportedly India’s third largest bank Bank of Baroda and also spearheads its co-lending programme, explains the bank’s approach to MSME lending in terms of cash flow-based lending, partnerships with NBFCs for co-origination of loans to small businesses, and the bank’s role in the MSME sector’s recovery post Covid.

Also read: SME Artha 2022 | Video: Axis Bank’s Sangram Singh tells what makes banks confident in lending to MSMEs

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First published on: 29-10-2022 at 11:38 IST