J&K Bank signs MoU with CIMSME to accelerate MSME growth

J&K Bank signs MoU with CIMSME to accelerate MSME growth
Photo: Jammu and Kashmir Information Department

Srinagar, Apr 11: Forging a partnership with the Chamber of Indian Micro, Small & Medium Enterprises (CIMSME) to accelerate the growth of manufacturing enterprises, J&K Bank today signed a Memorandum of Understanding (MoU) with the country’s apex chamber of MSMEs that represents their interests and issues with the Government and various Regulators while being an active participant in MSME related policymaking.

General Manager (Corporate Banking/MSME/Agriculture) AshutoshSareen signed the MoU on behalf of the Bank, while as, President Mukesh Mohan Gupta put in his signatures representing CIMSME in presence of MD & CEO J&K BanlBaldevPrakash, Executive Director Sudhir Gupta, General Manager Narjay Gupta, Director (CIMSME) SubhashJoinwal, DGMs and other senior Bank officials. Bank’s Divisional Heads also joined the function through VC Mode.

While lauding the role of CIMSME in the promotion of MSMEs, MD & CEO BaldevPrakash expressed pleasure over the signing of the MoU. He said, “As a responsible financial institution we understand that the MSME sector plays a critical role in fostering entrepreneurship and generates huge employment opportunities thereby contributing greatly to the country’s GDP. Moreover, MSME lending is profitable for the banking industry and we need to translate this MoU into solid business growth, especially in the rest of India because this is the sector which complements the large industries in the form of subsidiary units that are vital to the entire eco-system.”

“J&K Bank has always been at the forefront of creating employment opportunities and we have robust numbers to back our commitment towards encouraging the MSME growth in the country. There has been a growth of 440% in the number of Bank’s MSME accounts during the last six years while the credit exposure to the sector has witnessed 232% increase from Rs 4768 Cr to Rs 15872 Cr.”, he added.

Asserting that the MSME sector will bolster the economy of the UT and the country alike, MD said, “We will ensure that bankable leads generated by the CIMSME have processed in a time-bound manner.”

Speaking on the occasion, President (CIMSME) Mukesh Mohan Gupta said, “We feel honoured for J&K Bank’s acceptance of our request for the tie-up. Having J&K Bank on board is great to boost for us that will eventually help the MSME sector a great deal.”

Citing the lack of awareness about various MSME schemes and processes to avail the facilities, he stressed upon the need to educate lenders, particularly at operational levels and borrowers of this sector. He further added, “We will soon be coming up with a web portal for ease of both MSME lenders and borrowers.”

Executive Director, Sudhir Gupta said that signing of the MOU with the apex chamber is akin to forging a partnership that will go a long way in promoting the culture of enterprise across the country while adding to the Bank’s business profile.

Earlier, GM AshutoshSareen said that under the tie-up CIMSME will not only source the MSME/Start-up proposals across the country but will conduct due diligence on these proposals as per the Bank policy and RBI Guidelines. And once CIMSME is satisfied with the financials and tracks records of the company/firm, the leads will be shared with the Bank for further processing.

Notably, the Bank provided benefits of employment to around 92000 youth till March 2023, under the J&K Government’s flagship programmes ‘Back to Village 4.0’ and ‘My Town My Pride’ – a feat that has been hailed by the UT Government and people alike.

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