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RBI asks banks to restructure loans to Delhi MSMEs

New Delhi, Jan 13 (KNN) The Reserve Bank of India (RBI) has expressed concern over the public sector banks not doing enough to restructure the micro, small and medium enterprises (MSMEs) in the NCT of Delhi.

At a meeting of the Empowered Committee (EC) on MSMEs, held here last week, senior RBI officials asked representatives of the banks to work with the MSMEs which are battling heavy debt and are finding it difficult to service the same, officials said.

“The RBI officials referred to the recent comments of Deputy Governor of RBI K C Chakrabarty and told the banks to work without any delay on restructuring the debts of the MSMEs in trouble,” an official said.

The total number of sick micro and small enterprises (MSEs) in the National Capital Territory (NCT) of Delhi was 2896 as on September 30, 2013. Of these, only 127 are potentially viable, while 1680 are found to be non-viable. What is more worrying is the viability of 1089 enterprises that are yet to be decided by the banks.

The amount involved in the sick MSE units is 1.56 per cent of the total MSE credit.

As per the data from 18  banks (constituting exposure of 68  per cent of total credit of NCT of Delhi), NPA of MSE sector is around 5.2 per cent of total MSE credit as on September 30, 2013 as against 5.6 per cent as on March 31, 2013. The NPA of manufacturing and service sector stands 7.6 per cent and 2.6 per cent respectively.

The new guidelines for rehabilitation of sick Micro and small enterprises were effective from March 31, 2013.

“It has been observed that banks have started to report information to this office on the basis of revised guidelines. However some of the banks are still reporting on the basis of previous guidelines,” RBI said in its agenda for the 25th Meeting of the EC on MSMEs.

The banks in the State have financed Rs 65,662 crore to the MSME sector, as on September 30, 2013 as against Rs 55,491 crore as on September 30, 2012.

As on September 30, 2013 the share of manufacturing and services sector in total advances to MSEs was 51.3 per cent and 48.7 per cent respectively as against 49.1 per cent and 50.9 per cent in September 30, 2012.