Letter to BS: MSME sector is crucial when it comes to job creation

Banks have to be more vigilant and prudent in identifying the borrower

This refers to “MSME outreach drive starts today: Loan approvals for Rs 1-10 mn in 59 mins” (November 2). At a time when banks in general, and state-owned banks in particular, are burdened by stressed assets, and are taking deep haircuts for the resolution of the cases referred to the National Company Law Tribunal, this move raises the question whether the proposed disbursement will add to the existing non-performing assets or serve the purpose for which it is given.

The funding made by