Book Review: FINANCING MSME IN INDIA: Lenders Perspective

FINANCING MSME IN INDIA: Lenders Perspective by T. P Mishra, Deputy General Manager, Staff Learning Centre, Saraswat Cooperative Bank Ltd, at Vashi, Navi Mumbai. The book is an important contribution to the field of SME finance and credit appraisal.

Despite various advantages and its pivotal importance, MSMEs continue to face challenges of formalization, access to knowledge services, improving competitiveness, availability of skilled man-power, access to latest technology marketing and over all access to timely and adequate finance. In view of this RBI as well as Government of India has introduced various measures towards promoting the sector. To support at operational level, banks, non-bank financial institutions and line departments of government agency together accord lots of priority to promote this sector.

As we are aware that, quality of assets is an important prudential indicator to assess the financial health of the banking sector. Therefore, Banks and Financial institutions always desire to build a quality loan book through a qualitative credit appraisal. The sustainable growth of the credit and consistent profitability can be derived from a robust and healthy portfolio of assets. Keeping this objective in mind an effort has been made to design the book for the benefit of the employees of the financial sector in general and officials engaged in financing to MSMEs in particular. The Book has 3 distinctive divisions: Latest guidelines on MSME, Appraisal of credit requirement of the MSME entrepreneurs and case exercises/case studies. This book is a compilation of banks policies, guidelines, practices and various procedures garnered from experiences, interactions, and visiting various relevant sites, reports such as RBI master circulars, Government of India, SIDBI, MSME annual reports, that will serve as a useful reference guide in banking for such target groups. While designing the book, care has been accorded to include the latest guidelines of Government of India and RBI including Atmanirbhar Bharat Abhiyan scheme. Each case contained in this book are interesting & insightful thinking process coming from a professional banker.

Why MSME sector should be so important for the growth and development of India is well known. MSMEs play pivotal role in providing large employment at comparatively lower cost than large industries and also help in industrialization of rural and backward areas thereby reducing regional imbalances and assuring equitable distribution of national income and wealth.

The sector also absorbs the surplus agricultural labor, which they help in reducing the problem of disguised unemployment in rural areas. MSMEs are also complementary to large industries as ancillary units and also play an important role in the whole eco-system of the secondary and tertiary sector. Being` complementary to large industries this sector contributes hugely to the socioeconomic development of the country. Rural industrial programmes can be successful if they are oriented towards focusing on MSMEs.

The book is a timely addition to literature and is so designed that it will facilitate improving the credit appraisal acumen of the analysts. The first part the book deals with information about the evaluation and accreditation of credit. The focus of the Author, who is a seasoned banker is on due diligence at various stages of credit processing, intelligent pre-sanction appraisal the art of preparing a good credit proposal and the nuances of ‘choosing a worthy proposal. The second part gives an effective primer on real life case studies which shall help in improving the problem-solving ability of the credit officials. These apart, the book gives a ‘ready and hand’ reference-support on policies, guidelines, practices and procedures relating to the complex job of credit appraisal by banks.

The arrival of this book in the space of banking literature looks timely and it, would be a useful manual for the professional bankers in general and the staff handling credit portfolio, in particular.

Mr. T. P Misra: the author

Shri Tara Prasad Misra is presently the Deputy General Manager, at Staff Learning Centre, Saraswat Cooperative Bank Ltd, at Vashi, Navi Mumbai.

He is a career banker with Bank of Baroda for over 36 years.
He had exposure to diversified field of banking in India and abroad during his formative years. During his career, he has contributed several articles for magazines of national and international repute. His academic accomplishments include Bachelor’s degree in Agriculture, LLB, PGDRM, CAIIB, DCP, and CFPM.

He has shouldered several key responsibilities such as Branch Head, Head credit, Head Gram Vikas Kendra, Regional head, faculty at Staff College, and Principal of the Baroda Apex Academy.

He has contributed significantly as guest faculty for North India Regional institute of chartered Accountants (NRIC), WASME (World association of Small and Medium Enterprises). He was instrumental in getting national awards for Bank of Baroda in the field of innovative practices in L& D. He was associated in imparting Virtual training to overseas employees, Life cycle concept in training,drafted Glossaries on Banking terminologies, introduced E-learning for staff members of branches in UAE, e-publishing various periodicals, news letter from Apex Academy. He has contributed as a society member of IIM, Ahmadabad, Coordinator of Sujav Committee of the Bank of Baroda as well as Coordinator of Coordination Committee of Training in Hindi constituted by CAB, Pune. He has also contributed as a member of the Syllabus Committee constituted by IIBF, Mumbai. He pursues his academic interest by teaching, writing and publishing in the broad areas of banking with particular focus on MSME Credit, financial literacy, Bank marketing, Vigilance and regulatory issues.He can be reached at misratp@rediffmail.com,

How to order?

The book is published by YKING books. One can order the book through Amazon. And also it’s available in the leading bookstores across the country.

Financing MSME in India: Lender’s perspective( 2021), By T. P Misra
YKING Books
Price: INR 899/-