UCO Bank yet to form SLBC panel for MSMEs

Even after more than a year of the decision of the state level bankers committee (SLBC) to form a sub -committee to promote credit flow to the MSME sector, UCO Bank, the convener of SLBC, is yet form the desired panel.

“Formation of the sub-committee is underway and a final call will be taken before the 130th SLBC meeting scheduled to be held in February”, said an UCO Bank official.

For reviewing the credit flow to the MSME sector, it was decided to form the sub-committee in 123rd SLBC meeting held on May 26, 2011.

In November this year, the state finance department has asked the UCO Bank to expedite steps for the constitution of the panel.

“Principal secretary, Finance desires that expeditious steps may be taken for constitution of the sub-committee and a meeting of the said sub-committee may be convened as soon as possible to consider the recommendations made in the study report of the committee on Credit Flow to MSME sector”, RK Mishra, Director, Institutional Finance and ex-officio additional secretary wrote to the General manager, UCO Bank-cum-convener, SLBC.

The matters to be taken up by the sub-committee for examination and analysis includes- reasons for discrepancies in sanctioning of funds for proposals processed by the banks directly and those sponsored by the district industry centres (DICs)which are not getting similar treatments, non-maintenance of records at the bank branch level, screening of proposals, priority to non-DIC cases compared to the proposals routed through DICs etc.

Of late, the industry bodies have been pressing the government for floating a separate bank for the MSMEs.