Indian state-owned financial company, Indian Bank is planning to support MSMEs (Micro Small Medium Enterprises) by leveraging various products that are specifically going to benefit MSMEs.
Indian Bank has recently introduced ‘MSME Prerana’, which is an online training program exclusively for MSMEs to train them in basic accounting, Government or bank schemes for MSMEs, maintenance of books of accounts, and so on. MSME Prerana aims at empowering entrepreneurs owning MSMEs through skill development, and capacity building workshops.
Even if they have the required expertise in their field, many entrepreneurs find it difficult to maintain books of accounts, prepare financial statements and submit financial projections that are necessary for availing credit finance or for restructuring the loans based on their estimates or maybe for revising their working capital cycle. Until now MSMEs approached third parties who had enough knowledge regarding the matters, which was a time-consuming and expensive process for them.
Principal Financial Institution of the state, Small Industries Development Bank of India (SIDBI) engaged in the promotion, financing, and development of the MSME sector has come out with a module and web-portal for supporting these MSMEs. They are also responsible for coordinating the functions of institutions engaged in similar activities.
The MoU (Memorandum of Understanding) was signed in the presence of the Managing Director and Chief Executive Officer of Indian Bank, Padmaja Chunduru, M K Bhattacharya, and K Ramachandran, Indian Bank’s Executive Directors and Deputy Managing Director (DMD) of SIDBI, Manoj Mittal. The Memorandum of Understanding was executed on behalf of the Indian Bank and Small Industries Development Bank of India (SIDBI) by General Manager of SIDBI, Chithra Alai, and General Manager of Indian Bank (MSMEs) K Sudhakara Rao.
The module enables MSMEs to prepare their reorganization proposals and financial performance assessments and submit them to the bank. MSME can use this module without any payment. Branches or zones of Indian Bank will provide necessary assistance to MSMEs or using this module to submit the restructuring proposals to the bank.
