New Delhi:  As many as 22 Public Sector Banks (PSBs) have reported enhancement of limits of 38,300 small and medium enterprises (SMEs), the Ministry of MSME has said.

In a social media post, the Ministry said an enhancement of limits takes place upon renewal, revision or request by the borrower concerned.

MoMSME has asked the MSME Associations as well as organizations to advise their constituent members to apply to banks to avail enhanced limits.

Union MSME Minister Kalraj Mihra recently asked the banks to increase lending to the MSMEs sector as it is the largest employment generating sector and the growth engine of the economy.

Meanwhile, according to the target set by Prime Minister’s Task Force on MMEs for lending to Micro and Small Enterprises (MSE) sector was 20% year-on-year growth in credit. However, the target was achieved only by the Private Sector Banks while the Public Sector Banks and Scheduled Commercial Banks were far from achieving it.

According to the Prime Minister’s Task Force the allocation of 60% of the MSE advances to the micro enterprises was to be achieved in stages viz. 50% in the year 2010-11, 55% in the year 2011-12 and 60% in the year 2012-13 and it also asked the banks to achieve a 10% annual growth in number of micro enterprise accounts.

Source: menafn