Leadership – MSMEs – – Bank of India
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Bank of India
Problem
- Compliance related issues and other financial statements is a very tough task.
- Due to lack of experience and awareness, many firms are missing out on the latest technology advancements in their industry.
- Imparting financial discipline has also been a major challenge.
- Meeting the financial demand is a big challenge which is being tackled through various measures taken from time to time.
- MSME Sector is also facing problems of unskilled labours
Solution
- BOI has setup more than 110 Processing Centres which are solely responsible for processing the MSME application.
- Adequate Marketing Officers / Relationship Managers are posted which are responsible for the collection the documents.
- 125 MSME specialized branches are also operational which are responsible for encouraging the MSME financing.
- Above 10 Lakhs is routed to Processing Centres where processing / sanctioning of these applications are done with complete transparency.
- BOI has appointed many BSAs which are working in collaboration with the processing centres for generation of the MSME applications.
Outcomes
- The MSMEs now are kept informed of technology advancements that directly impact the success of their companies.
- Imparting Financial Know How in MSME Segment Post deployment MSMEs are now learning financial discipline.
- The Digital Lending Department now looks after various digital and technological innovations.
- Uses of these innovative practices that will motivate young tech savy generation to connect with bank.
- The loans of up to Rs.10.00 Lakhs are processed through E-Platform which is the end to end digitalization for processing of the MSME application.
SKOCH Award Nominee
Category: Public Sector Bank
Sub-Category: Public Sector Bank
Project: Leadership – MSMEs –
Start Date: 2023-07-10
Organisation: Bank of India
Respondent: Mr Pankaj Deshmukh, Chief Manager
https://bankofindia.co.in/
Level: Club Star
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Case Study
Bank of India-MSMEs
Introduction
The bank is serving the MSME sectors through its network of rural, semi-urban and urban branches. The Bank has registered an outstanding level (Gross MSME Advance) of Rs. 70,777 crores, registering a Y-o-Y per cent growth of 9.31%.
Solutions
The MSMEs are now informed of technology advancements that directly impact the success of their companies. Financial Know-How is Imparted in MSME Segment Post-deployment MSMEs are now learning financial discipline.
Outcomes
The MSME segment covers more than 91% of the Micro and Small segments, and the rest under the Medium segment. BOI has more than 15 Lakhs accounts under the MSME segment across the country.
Challenges
The main challenges are compliance-related issues, as obtaining documents like the UDYAM Registration Certificate, PAN, and other financial statements is very tough.
Innovation
A Digital Lending Department is set up to look after various innovations and implementations where MSME processing is done through digital mode.
Opportunities
78% of the finance used by MSMEs is met by informal sources and self-finance. The remaining 22% (Rs 6. 9 trillion) is provided by banks and NBFCs. There is a huge potential for the remaining 78% .(Rs.24.46 trillion) of finance, which could be captured by the Bank of India for Scaling up the MSME Business Portfolio.
Summary
BOI has given distinctive attention to the Govt. Sponsored schemes and has successfully implemented these schemes at grass-root level, thereby generating employment and uplifting the economic conditions of the weaker section of the society.
For more information, please contact:
Mr Pankaj Deshmukh, Chief Manager at Pankaj.Deshmukh@bankofindia.co.in
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