"We need transition from collateralized to confidence-based lending: A. K. Mehta"
J&K Bank today conducted a day-long workshop on Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE) in ITC Hotel Fortune Inn, Riviera, Jammu. The workshop was organized by the Bank in collaboration with CGTMSE (Mumbai) and SIDBI.
A. K. Mehta, Executive Director/ Chief Operating Officer of J&K Bank inaugurated the workshop. While speaking in his inaugural address, Mr. Mehta stressed upon the need for changing the mindset so that there is a swift but smooth transition from Collateralized lending to Confidence-based lending.
"This would create conducive atmosphere of enterprise building by strengthening the subsisting relationship between the lender and the borrower in the process", he said.
Although impressive growth has been recorded in the productive sector of the economy in the recent past, yet there is tremendous scope of leveraging technology, resources and opportunities for ushering in a new era where MSEs can emerge as the predominant sector in the economy, he added.
The workshop extended open invitations to the stakeholders for participation with an intention to generate awareness about the Credit Guarantee Scheme for Micro & Small Enterprises for promotion of MSEs in J&K State.
Present on the occasion, Joint Director, Industries & Commerce-Kashmir shed light on the industrial scenario of J&K State and highlighted the offerings and the schemes of the Government.
He said that because of the incentives provided by the Government for promotion of the MSMEs Sector in the State a number of high profile industrial houses of the country like Sun Pharma, Lupin India Limited, Dabur India Limited etc. have established their units at various locations in the State.
P. M. Radhakrishnan, General Manager, CGTMSE, Mumbai, made a Power Point Presentation on the core subject of Credit Guarantee Scheme for Micro & Small Enterprises.
During his presentation, he comprehensively elaborated on Credit Guarantee Scheme for Micro & Small Enterprises and fully explained its various aspects and relevance for collateral free loaning to augment flow of credit for productive activity and MSMEs sector.
He said, "The banks and the entrepreneurs should understand the benefits and take advantage of the Scheme for promotion of the MSMEs sector in the State."
The representative of J&K Entrepreneurship Development Institute (J&K EDI) highlighted the role their department plays for promoting entrepreneurship in the J&K State. He also dwelt upon the Seed Capital Fund under SKEWPY for which J&K Bank has agreed to act as partner-financier.
The DGM, RBI, while presenting vote of thanks appreciated the efforts of J&K Bank in having taken the lead for organizing such programmes for the benefit of the MSMEs Sector in the State.
Neeraj Srivastav, AGM, SIDBI in his concluding remarks stressed on banks and other stake-holders to take advantage of the Scheme. He also expressed gratitude for J&K Bank and the SLBC team for extending cooperation and support in ensuring the event.
The Reserve Bank of India, Regional Office, Jammu was represented by Deputy General Manager. Top executives including Vice-Presidents, Zonal Heads, Cluster Heads, Lead Bank Officers of J&K Bank and State Bank of India attended the workshop.
A number of representatives drawn from J&K EDI, representative organizations of Industries, Federation of Industries, Jammu Chamber of Commerce & Industry, SIDBI, J&K Bank, NABARD, SBI, PNB, J&K Grameen Bank, Ellaquai Dehati Bank and other major Public Sector Banks operating in Jammu Division, Directorate of Industries & Commerce, J&K Government etc. participated in the workshop.