LENDING OF CREDITS TO SMEs & BUSINESS BANKING

Abstract

India, as to evaluate the credit lending mechanisms & to understand the other financing methods. However firstly, the focus has been asserted on understanding the Indian Banking Sector which comprises of Public banks, Private Banks, Cooperative Banks, and RRBs etc. Following which, a brief discussion has been made to understand the regulatory and credit lending norms followed by SMEs in accordance with RBI & Committees under the Ministry of Finance. The main purpose of this study is to evaluate the availability of credit for Small and Medium scale enterprises so that the entrepreneurs can participate in Business Banking & hence can move towards profitability. To conduct a uniform research and arrive at a relevant conclusion, the research has been made restricted to only Indian Banks. The report examines the Business Banking performance of eight Indian Banks. In order to conduct this study, the use of secondary data has been made solely. The analysis mainly covers Credit rating policy, Risk Rating by RBI & other agencies, Calculation of Bank Finance and more such related parameters. In spite of all the measures, the availability of adequate and timely credit to SMEs continues to be a major concern. Despite the best intentions of the Government to expand the credit to SMEs, the results are far from satisfactory. With this study, I have tried to evaluate the various steps & measures taken by the Government to promote credit lending. Following this, suggestions have also been discussed in the report. In order to fulfill the objectives of the study, secondary research methods have been used.