MSMEs are pivotal to Uttar Pradesh's economy, says Sharad S Chandak

The Uttar Pradesh government has set an aim to become a $1-trillion economy and the chief minister has fixed a five-year deadline to achieve it. According to him, small and medium industries would play an important role in meeting this target. State Bank of India (SBI), the country’s leading public sector bank, has played an important role in accelerating the growth of UP and its economy. SBI has a vast network of branches in UP. Chief General Manager (CGM) of SBI (Lucknow circle), Sharad S Chandak, was among the panelists at the Samriddhi programme organised by Business Standard in Lucknow recently. Chandak spoke with Siddharth Kalhans on the economic scenario in UP.

How important is the role of micro, small and medium enterprises (MSMEs) in UP’s economy?

Small and medium enterprises have been an integral part of the economy in Uttar Pradesh. As you can see in UP, MSMEs generate the highest employment after agriculture. If we look at the total exports from UP, MSMEs have the maximum share in it. We also see a high degree of entrepreneurship and innovation in MSMEs. Hence, there is a need to focus on this sector.

What role is SBI playing to promote the MSME sector?

State Bank of India has always recognised the importance of MSMEs in the growth of UP. This is why a good number of specialised bank branches for MSMEs have been opened in the state. Today, SBI has around 2,200 branches in all the 75 districts of UP and 100 are for MSMEs. 

Through its relationship managers, SBI has been handling the issues related to MSMEs and providing solutions. 

In Uttar Pradesh, MSMEs always face a problem of capital. How is SBI working on this problem?

We have taken many steps to remove hurdles for the MSME sector. The issue of capital is prominent among them. You can see that the YONO app of SBI is providing pre-approved business loans and MSMEs are the major beneficiaries of this. This is like a boon for the small and medium industries where they can get loans without any problem. 

We are using technology to meet the challenges of the MSME sector and providing them the required capital. 

What has SBI done in the recent past regarding loans to the MSME sector in UP?

A lot of things have been done in the recent past regarding MSMEs in UP. In the last few months, SBI has organised special camps for disbursing loans under the Mudra, Pradhan Mantri Swanidhi Yojana and other such schemes. Through these camps, the SBI has disbursed an amount of Rs 100 crore in just one month. We are proactive and we always take part in any scheme launched for the MSME sector. MSMEs are very important for the SBI.