Both Yes Bank and Exim Bank today signed an MoU with CII - Godrej Green Business Centre (GBC) to promote small and medium enterprises in auto ancillary, textiles, gems and jewellry, media and entertainment and life sciences and biotech sectors. | |
| The objective of the MoUs is to promote green enterprises among the SMEs to make their products export-worthy. The green enterprises are typically energy efficient and help in sustaining the natural resources. The tie ups with the banks will essentially focus on the facilitation of such small and medium units. The financial institutions will focus on developing renewable energy and sustainable infrastructure among SMEs. |
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| "Focussing on SMEs will ensure widespread entrepreneurship development across the country," said Somak Ghosh, president, corporate finance, Yes Bank. "We see the small and medium entrepreneurs as emerging corporate. And we expect that in the next 3-5 years much of our business will be with this sector," he said. |
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| Added CII-GBC chairman, Jamshyd Godrej, "Building entrepreneurship in SMEs for sustainable growth is important. Through this initiative we will try to make this sector bankable as it still faces hurdles in getting funds from the financial institutions." He added that more partners will be brought in, including mentors from the industry to help the sector. |
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| Both Godrej and Ghosh agreed that money is not an issue. "Early identification of the small players is important," said Ghosh. He added the opportunity will provide the bank establish close links with the sector. |
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| Yes Bank will create 20 teams across the country, to identify emerging SMEs in different regions. "We will follow the cluster approach. However, lending will be on an enterprise basis," he said. National Capital Region (NCR), Pune-Nashik, Ahmedabad -Surat, Hyderabad-Bangalore and Kolkata-Orissa belts are among the main focus areas of Yes Bank. |
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| David Jhirad, vice president for science and research, World Resources Institute, said that major banks have approached the institute for funds to help emerging SMEs. "In India, it is the engine of growth. There is high value proposition for SMEs and financial institutions in the country," he said. |
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