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Volume : III, Issue : II, March - 2013

PROBLEMS AND PROSPECTS IN BANK SME FINANCING IN INDIA

B. NAGARAJU AND KAVITHA VANI S.D

Published By : Laxmi Book Publication

Abstract :

Financial services are vital in developing a vibrant SME sector. However access to financial services to this sector remains severely constrained. Lack of access to financing is consistently cited by SME's as one of the barrier to growth. Commercial banks are the oldest institutions having a wide network of branches, commanding utmost public confidence and having lion's share in the total banking operations. Often commercial banks consider SME financing as risky and costly to serve because of insufficient assets, low capitalization, vulnerability to market, and lack of accounting records. The study attempts to understand the commercial banks lending to priority sector and non priority sector lending and to identify problems and prospects of SME lending. Overcoming the challenges can results in excellent opportunities to commercial banks by proving a wide market to serve and make SME lending a profitable banking operation. Moreover SME has multiple banking needs. This in turn can provide excellent opportunities in the other banking operations. Commercial banks should be proud of serving an important sector of the economy, which is the key engine growth of the Indian economy.

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Cite This Article :

B. NAGARAJU AND KAVITHA VANI S.D, (2013). PROBLEMS AND PROSPECTS IN BANK SME FINANCING IN INDIA. Indian Streams Research Journal, Vol. III, Issue. II, http://oldisrj.lbp.world/UploadedData/2122.pdf

References :

  1. Macmillan, Principles & Practice of Banking, 2009, Indian Institute of Banking & Finance
  2. Dr. Vasant Desai, Small-scale Industries and Entrepreneurship, 2008,Himalaya Publishing House.
  3. Dr. Vasant Desai, The Dynamics of Entrepreneurial Development And Management, 2010, Himalaya Publishing House
  4. Vijayaragavan Iyengar,2009, Introduction to Banking, Excel Books
  5. K.Venkataramana, Law & Practice of Banking, 2010, Sevenhill publication

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