Weekly news Snippet - Edition 9

I.?MSME:?

1.?Credit and finance for MSMEs:

Small Industries Development Bank of India (SIDBI), the principal financial institution for MSMEs in India, signed a memorandum of understanding (MoU) with the Uttar Pradesh government’s Department of MSMEs and Export Promotion to help develop private industrial parks in the state under the latter’s PLEDGE (Promoting Leadership and Enterprise for Development of Growth Engines) scheme. As per the MoU, SIDBI will offer financial assistance to meet the funding gap for establishing private industrial parks.(1)

2. MSMEs the largest employer in the country:

Despite facing a challenging phase, the country’s MSME sector continues to create employment and foster entrepreneurship across the length and breadth of the country, said B.B Swain, Secretary, Ministry for Micro, Small and Medium Enterprises (MSMEs). Citing the latest available data of the National Sample Survey (NSS), he said the MSME sector has been creating 11.10 crore jobs.(2)

II. Banking:

1.??????Change in leadership:

Karnataka Bank has announced the appointment of Srikrishnan Harihara Sarma as its new MD & CEO. He has previously held key positions at HDFC Bank, Yes Bank and Jio Payments Bank.(3)

2. Future of Banking:

Minister of State (MoS) ?for Finance Bhagwat K Karad on 29th May said banks need to focus on digitalization and keep a vigil on stressed loans. Bank should also undertake financial literacy and financial inclusion activities, Mr. Bhagwat K Karad.(4)

3. New Partnership:

Indian IT major Tech Mahindra announced on 31st May that the company has got into a strategic partnership with Bank of Baroda aimed at improving the customer service of the bank through digital solutions.(5)

III. Finance:

1.?Bad loans decline:

Sales of non-performing assets (NPA) to asset reconstruction companies and technical write-offs of extremely sticky ones helped the microfinance sector reduce its bad-loan stockpile by around 1/7th to Rs. 36,600 Crore at the end of March. That compares with a peak of Rs. 42,300 Crore three months prior to that.(6)

2.?Merger and Acquisition:

Warburg Pincus, the US based private equity firm, has acquired a controlling stake in Vistaar Finance, an NBFC lending to MSMEs in India in partnership with ICICI Bank veteran Avijit Saha. The private equity fund and Saha acquired about 95% stake in Vistaar finance for Rs. 2,500 Crore.(7)

Bibliography:

1.???????financialexpress.com/industry/sme/msme-fin-sidbi-signs-mou-with-up-govt-to-support-setting-up-of-private-industrial-parks-msmes-green-projects/3103552/

2.???????economictimes.indiatimes.com/small-biz/sme-sector/msme-sector-to-soon-become-the-largest-employer-of-the-country-b-b-swain-msme-secretary/articleshow/98894491.cms

3.???????economictimes.indiatimes.com/industry/banking/finance/banking/ex-jio-payments-bank-chief-appointed-md-of-karnataka-bank/articleshow/100627869.cms

4.???????economictimes.indiatimes.com/industry/banking/finance/banking/banks-need-to-improve-digitalisation-and-keep-vigil-on-stressed-asset-mos-finance/articleshow/100595482.cms

5.???????businesstoday.in/latest/corporate/story/partners-with-bank-of-baroda-to-improve-banks-customer-service-383729-2023-06-01

6.???????economictimes.indiatimes.com/industry/banking/finance/microfinance-sectors-bad-loan-stockpile-decline-to-rs-36600-Crore-by-march/articleshow/100599634.cms

7.???????economictimes.indiatimes.com/industry/banking/finance/warburg-pincus-acquires-95-stake-in-vistaar-finance/articleshow/100594766.cms