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Rising NPAs in MSME sector in West Bengal worrisome: SBI

PTI | Kolkata |

Country's leading lender State Bank of India (SBI) on Thursday said that the rising NPAs in the MSME sector in West Bengal was worrisome for which the bank had introduced new assessment system for these units.

“It is worrisome that the level of NPAs in the MSME sector has touched 16 per cent. We are trying to solve the problem”, CGM of SBI (Bengal circle) Partho Pratim Sengupta said.

Sengupta while talking to reporters on the sidelines of an ICC seminar on MSMEs here, said that the rise in NPAs in the state been driven by iron and steel based companies.

Starting August 5, 2017, SBI had introduced new system of assessment for the MSMEs across the country, Sengupta said.

Under the new system, MSMEs having loan requirement Rs 50 lakh and above would be judged on the basis of cash flow rather than the balance sheet.

He said that this was a simplified method of financing based on some questions and bank statements.

“This was being introduced on a pilot basis”, he said.

Till March 2017, SBI accounted for 33 per cent of all the MSME advances made in the state.

Despite the rising NPAs the MSME sector in the state had been growing at a faster pace than large corporates, he said.

The bank had extended Mudra loans amounting to Rs 1365 crore, loans under Stand-Up India and PMEGP respectively at Rs 60 crore and Rs 91 crore.

Besides, the bank had also introduced an internal rating system, he said.

A high rating would entail a lower interest rate and vice-versa, he said.