'Banks to play bigger role in MSME sector'

The role of banks to nurture the micro, small and medium enterprises (MSME) sector by going beyond just providing finance was underscored at a meeting organised by the Federation of Andhra Pradesh Chambers of Commerce and Industry (Fapcci) as part of the nationwide India Corporate Week-2010 celebrations on Saturday.

“The corporate sector should play a more meaningful role in achieving inclusive growth for sustainable development. All stakeholders, including the Reserve Bank of India (RBI), banks, academia and entrepreneurs, should work in a partnership mode for sustainable development,” said PD Sudhakar, special secretary, Union ministry of corporate affairs.

Speaking on the occasion, State Bank of Hyderabad managing director Renu Challu said the bank had special focus on the MSME sector, which accounted for about 15 per cent of its asset book. “And, the micro sector accounted for about 45 per cent of our MSME book,” she added.

Agreeing that the role of banks should go beyond just financing to the MSME sector and take on the role of a partner in the venture, R Ramachandran, chairman and managing director of Andhra Bank, said he saw significant opportunities for the MSME units in the manufacturing sector in the coming years.

Fapcci today released a comprehensive publication on ‘Industrial Development in Andhra Pradesh 1956-2010’, edited by senior journalist V Hanumanta Rao.