|
|
|
Building capacity
|
|
|
|
|
Capacity Building support to Banks/FIs
An important sub-component of the DFID TA is to build institutional capacity within participating banks and FIs for effective delivery to the MSME sector. This is done by innovating delivery mechanisms, modifying processes, launching new products and training of officials in MSME lending, etc. More detailed information on initiatives is as follow:
- Trainings
The Project supported capacity building of officials from various banks on the theme of Risk Capital Financing, Credit Scoring, Downscaling, Environment and Social Framework, etc. with support from local and foreign experts. Under this component, till now, 562 officials have benefited from various such training programmes
-
Encouraging more Institutions to lend to MSME sector – Capacity building of SFCs / NBFCs
Besides, the Project has also been working with several institutions to build their capacity to lend efficiently to MSME sector. Capacity building assistance has been sanctioned to the Andhra Pradesh State Financial Corporation (APSFC) to initiate the process of migrating to an Enterprise Resource Planning technology and also to build the capacity of its staff. Training programmes conducted have so far reached out to 154 officials.
Rs 3.5 million has been sanctioned to Electronica Finance Ltd., an NBFC engaged in financing of Machine Tools to MSME sector. The assistance is aimed at reducing the transaction costs, broaden the coverage and provide embedded BDS to the MSME units. 32 officials have been trained till date.
.
-
Improving Risk Management practices of Banks - Integrated Risk Management proposal of SIDBI
An Integrated Risk Management System was put in place to improve SIDBI’s organizational capacity for putting in place risk based decision making system which will address risk related issues directly and shall enable enhanced credit flow to MSMEs.
-
Introduction of new financial products – Risk Capital Financing - SIDBI Foundation for Risk Capital (SFRC):
Pursuant to Government of India announcing a Risk Capital Fund (RCF) of Rs 20,000 million with SIDBI, an amount of Rs.13.5 million has been sanctioned for Capacity Building of SIDBI Foundation for Risk Capital (SFRC) which includes the following:
- Studies on (a) Understanding gap in risk capital in India, and (b) Feasibility of Small Business Investment Companies model in India
- Policy & Product Development, Engaging of Industry experts
- Information dissemination of risk capital products to MSMEs/ banks
- IT software infrastructure to handle the RCF operations for in-house management, inter-bank and customer interface.
- Training & HR capacity building - Training to staff, exposure visits, workshops, etc in co-ordination with similar VC players, both national/ international
SFRC has initiated several steps in this direction.
|
|
|
|
|
|
|
|
|
|
|
|
Latest News
|
|
|
|
|
|
|
|
|
|
|
|
.........................................
|
|
|
|
|
|
|
|
|
|
|