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| CGTMSE - achievement of target coverage of 1,00,000 proposals in FY 2010 |
| Announcement / Banking Jan 07, 2010, 18:37 IST |
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Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) was established by Govt. of India and SIDBI in August 2000 to facilitate collateral free credit to the Entrepreneurs in the Micro and Small Enterprises (MSEs) Sector. During the first nine months of financial year 2009-10, CGTMSE has shown commendable growth in its performance in terms of number and amount of guarantee covers issued under its Credit Guarantee Scheme on all India basis. Against the set target of covering 1,00,000 proposals under its Credit Guarantee Scheme (CGS) during FY 2010, CGTMSE has already reached the target registering a growth of 86% and 103% in terms of number of guarantee approvals and amount respectively over the previous financial year.
CGTMSE issued the 1,00,000th Credit Guarantee Approval Certificate to Punjab National Bank in respect of their collateral-free loan of Rs.60 lakh sanctioned to M/s. Chemical Corporation of India, Bulandshahr, Uttar Pradesh, at a function organized at Punjab National Bank, Head Office, New Delhi. Shri Madhav Lal, I.A.S., Additional Secretary & Development Commissioner (MSME), Ministry of Micro, Small and Medium Enterprises (MSME), Government of India handed over the Certificate to Shri K R Kamath, CMD, Punjab National Bank in the presence of Shri R M Malla, CMD, SIDBI and Chairman, CGTMSE and senior officials of Punjab National Bank, SIDBI and CGTMSE.
Speaking on the occasion Shri Madhav Lal mentioned that the credit guarantee is an important initiative of the Government of India for increasing the credit flow to micro and small enterprises in the country and the Government is keen on encouraging entrepreneurship and self-employment avenues in rural and semi-urban areas.
Shri Kamath in his address indicated that PNB was committed to financial inclusion and the Credit Guarantee Scheme (CGS) offered excellent opportunity for youngsters and first generation entrepreneurs to set up their own units without collateral security. PNB would continuously strive to accelerate its coverage under CGS.
Addressing the function, Shri Malla appreciated the lead role played by Punjab National Bank in helping CGTMSE to reach the target of 1,00,000 proposals in FY 2010. During FY 2010, as at December 31, 2009, Punjab National Bank emerged as the MLI with the highest coverage of 19,651 guarantee approvals for Rs.673.68 crore with Uttar Pradesh accounting for the highest coverage for States. Cumulatively, as at December 31, 2009, Punjab National Bank has covered 37,017 proposals for Rs.1000.79 crore under Credit Guarantee Scheme. Shri Malla emphasized that CGTMSE would take all necessary steps to strengthen its partnership with Banks and other MLIs for increasing the coverage under the Scheme in the days ahead.
Shri O.S. Vinod, CEO, CGTMSE indicated that cumulatively, as at December 31, 2009, 2,49,164 proposals for Rs.9,192.27 crore had been approved by CGTMSE on all India basis since inception and the Trust was hopeful of rapidly scaling up the coverage further during FY 2010. Around 84% of these guarantees were to small borrowers with average loan size of below Rs.5 lakh. CGTMSE as on date has 99 Member Lending Institutions comprising of all PSU Banks, major Private Sector Banks, Regional Rural Banks, NEDFi and SIDBI. The operations of the Trust are conducted online through internet based B2B portal, resulting in transparency and efficiency of operations.
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