The leaders of the cooperative banking sector have hailed the govt decision allowing co-operative banks including urban cooperative banks to avail Interest Subvention Scheme for MSMEs.
Co-operators have been demanding participation in this scheme and leaders of Sahakar Bharati had also met the Union Finance Minister on the issue. Nitin Gadkari, the MSME minister had also promised to look into the demand.
We reproduce some of the reactions
Kalupur Commercial Cooperative Bank, GM and CEO, Vinod Dadlani
It’s a very good decision and will help UCBs to get the MSME business where borrowers were reluctant to take loans from UCBs due to no interest subvention benefits. We will have a level playing field. This will also help us increase priority sector advances.
AP Mahesh Urban Cooperative Bank, MD, Umesh Chand Asawa
It is a great relief and recognition of co-operative banks for the govt schemes. At long last, RBI has given due weightage to coop banks on par with commercial banks. Our MSME borrowers now will not feel that they are at a disadvantage in banking with cooperative banks. Very positive for the sector.
Pune People’s Cooperative Bank, Chairman, Janardan Ranadive
This will benefit the sector. But what about trade finance, finance for salaried persons, Gold Loans, Personal Loans, Builder Finance etc.
Chandrakant Chougule, Vice-Chairman,Kaijs Bank
It is good news for Cooperatives Banks because the MSME borrowers of the banks will benefit. Before this the cost of finance of these borrowers was high compared to those banks that were already benefiting.
The cost of finance will be reduced and this will help in the growth of business of cooperative banks. It will also help in controlling the NPA because the benefit will not be available to the NPA accounts. And for receiving this benefit the borrowers will have to take care of repayment. Ultimately it will help to improve the economy also because the cooperative banks are almost financing the MSME sector.
Manjunatha T Kanchan, CEO, G S Mahanagar Cooperative Bank
It’s really good. Borrowers of co-operative Banks will also benefit from the interest subvention scheme.
Nagaland State Cooperative Bank, General Manager, Abhijit Kumar Deb
It is a welcome decision. However, all the banks will not benefit. My observation. The NPA relaxation should be extended along with subvention to contain the burden of provisioning.
Manavi Urban Cooperative Bank Chairman Thimmaiah Shetty
Co-op banks wish to participate in financing MSME loans and start ups under the central government scheme, credit guarantee scheme.
Gnana Shale Souharda Credit Cooperative, Sridhar Neelkant Rao
Industrial exposure is good. It helps to expand business cater to a new set of accounts.
Aurangabad Urban Cooperative Bank, Chairman, Ashok Jagtap
It’s not beneficial for the sector. Jagtap, however, failed to explain how it is not beneficial to UCBs.
Keshav Sahakari Bank, Chairman, Jai Prakash Gylati
Good news for MSME borrowers (members of cooperative banks), eligibility, terms and conditions to be checked