Crisil may not join venture to rate small firms

Credit Rating Information Services India Ltd. (Crisil), which had joined hands with the Small Industries Development Bank of India (Sidbi) and other banks to start a company to rate small industries might not go ahead with the proposal now that Standard & Poor's (S&P) has acquired a majority stake in the former.

D Thyagarajan, director, Crisil, said that the proposal might not be pursued anymore following S&P's acquisition of the rating company.

"All will now depend on the decisions ratified by S&P. There has been a major internal change and we would go with S&P's line of thinking," he said.

The venture was initially scheduled to commence its services from May. Thyagarajan was speaking on the sidelines of a seminar on performance & credit rating scheme for small scale industries organised by Bengal National Chamber of Commerce & Industry in association with National Small Industries Corporation Ltd here today.

Meanwhile Crisil has drawn up a strategy to provide greater thrust on the small and medium segment (SME) and has already formed a separate strategic unit that would focus on rating small and medium industries.

O new focus areas, Thyagarajan said, "We would like to promote and dedicated our energy and effort for the SME sector and would provide our support to the segment."

"There is a lot of potential in the segment and we are keen on providing value added services to them," he added.

"At present credit rating is being done for major companies and commercial banks. Rating will help bankers to extend loans in a speedy manner to small-scale industries and entrepreneurs with good track record also get benefited with lower interest rates," he explained.

"Risk perception among bankers for SSI is on the higher side where the non-performing asset is slightly higher. We need to change that," he explained.