SLB in TN asks banks to streamline credit flow to MSMEs

In tune with the RBI's policy, the State Level Bankers' Committee in Tamil Nadu Thursday urged bankers to streamline credit flow to the micro, small and medium enterprises (MSMEs), saying the sector needed more attention.

SLBC Chairman R Subramania Kumar, in a statement, said there was huge scope for expanding credit to the sector since a large number of MSME units were present in the state.

The SLBC is an inter-institutional forum at state-level ensuring co-ordination between government and banks on matters pertaining to banking development and city-headquartered Indian Overseas Bank is the Convenor Bank of the committee in Tamil Nadu.

Kumar who is also the Managing Director and CEO of IOB, said, "Bankers have to make a realistic assessment of the credit requirement and provide adequate credit on time by making use of automated portals so that the MSMEs need not look outside the Banking system for additional finance."