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Fianance

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International Journal of Business and Management Tomorrow

Vol. 2 No. 7

Scope and Strategies in Financing of SMEs by Banks
Onkar Chand Rana, Asst. Professor, Sri Sai University, Palampur, H.P. Professor K. Ravi Sankar, IGNOU, New Delhi

Abstract
Scope and Strategies in Financing of Small and Medium Enterprises by Banks- a case study of State Bank of India at Pathankot, was conducted with a view to examine the problems of SMEs of Pathankot area, examine the scope of further financing SMEs by Banks in Pathankot area and devise requisite strategies for financing of SMEs by Banks in Pathankot area and thereby increase their SME loans portfolio which would help the banks and ultimately the country to achieve the projections as per Indian vision 2020- a document by the Planning Commission according to which the Industry share in GDP which is 26% at present is projected at 34% and the service sector share which is at present 46%, is projected at 60% by the year 2020. On the analysis of the secondary data, which was obtained from Banks Performa Reports, Annual Returns and Annual Credit Plans, it was observed that huge scope exists for the banks in Pathankot centre for intensive financing of SMEs which is observed from the data that at present CD Ratio at the centre is 58.71% (below the prescribed national average of minimum 60%) and the share of SMEs to total advances being 31.58%, which need to be increased to at least 50%. The primary study was conducted on the basis of random samples of five hundred micro, small and medium enterprises from manufacturing and service sectors at Pathankot. The tabulated data was analysed by applying requisite statistical tools and inferences drawn. Based on the percentage wise responses the innovative and dynamic strategies have been suggested Keywords: Micro, Small, Medium Enterprises, Scope, Strategies, Banks

1. Introduction…...

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