potential in small & medium enterprises for banking sector

8/9/2019 Potential in Small & medium enterprises for banking sector

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It is situated at the east end of Tijara Tehsil of Alwar District, Raj.

It is in the outskirt of NCR (National Capital Region)

It is 55 km. from IGI, New Delhi and 200 km. from State CapitalJaipur

It is spread in 8500 acre and hub of MSME.

Presently more than 2500 MSML scale industries are operational in

area.

Auto Sector is most dominant sector carrying more than 30% of

total industries.


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To find out existing as well as potentialfinancial needs of various small &

medium enterprises in I.E. Bhiwadi.

To examine various ways of banks forfulfilling their needs.

Examine satisfaction among industriesfor services provided by their

respective banks.

What is the source of finance for SMEsother then banks.


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Research Type

Exploratory

Sampling

ConvenientSample

Data Source

PRIMARYDATA

PersonalMeeting

Questionnaire

SECONDARYDATA

Internet

CompanyWebsite

RIICO


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Needs and requirement of various SMEs

Position of SBBJ bank vis--vis with other financialsas well as NBFC.

Various schemes offered by banks

Satisfaction for their respective Bank and switchingpattern among industries.

Potential in Bhiwadi for SBBJ Bank


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Corporate offices at center places

Contacted Person didnt have sufficient knowledge

Transportation

Reluctant to share financial aspects

Respondents didnt corporate

Large area & time constraint


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Established in 1963 with amalgamation of State Bank of Jaipurand State Bank of Bikaner

An Associate Bank of State Bank of India

Total 960+ branches & 510+ ATMs throughout India.

Bank is smoothly migrating to Basel 2 stage.

Banks total business have crossed Rs. 75,000 Cr. Mark andNet profit of Rs. 425 cr. By the end of March 2010.

Bank will soon be come under the SBI merger of all the

associates state bank branches under one name.

Banks operations are classified in 3 segments

a) Treasury operations

b) Corporate operations

c) Retail Operations


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EXAMINE CORE BANKING ACTIVITIES FOR

FULFILLING SMES NEEDS.

Cash Credit Letter of Credit

Export Packing Credit

a) Pre-shipment Credit

b) Post-Shipment Credit Term Loan

Bills Receivables

Bills Payable

Foreign Exchange

Bank Guarantee Overdraft

RTGS (Real Time Gross Settlement)

NEFT (National Electronic Fund Transfer)


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SMALL & MEDIUM ENTERPRISES

Classification of SME (Enterprises)Enterprises have been classified broadly into 2 categories, namely

Enterprises have been defined in terms of investment in Plant

and Machinery /equipment (excluding land and buildings) are as

below:

1.Enterprises engaged in Manufacture/ Production of goods

pertain to any industry.

2.The enterprises engaged in providing/rendering of services.


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DEFINITION OF SMALL, MEDIUM & LARGE

SCALE INDUSTIES

Classification Manufacturing Services Enterprises

MICRO Up to Rs. 25 lakh Investment up to Rs. 10

lakh

SMALL More than 25 lakh and upto Rs. 5 crore

More than Rs. 10 lakh &

up to 2 crore.

MEDIUM More than 5 crore andupto Rs. 10 crore

More than Rs. 2 crore &up to Rs. 5 crore

LARGE More than Rs. 10 crore More than Rs. 5 crore


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Various financing schemeshave been specificallytargeted towards SME

1. CorporateCredit facility for

SME

2. Governmentincentive

financing for SME


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1. CORPORATE CREDIT FINANCING

Type of WC loan Loan Description

Factoring Loans Receivables sold to the bank for

immediate cash

Overdraft Ready cash for any business need

Revolving Credit Loan sum available for fixed period

during which amount repaired

may be re-borrowed

(A) Working Capital Financing:-


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(A)Loan enterprises financing schemes

(B)Micro Loan Programme

(C) Resource productive schemes

(D)Loan insurance scheme II


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TOTAL NO. OF INDUSTRIES ARE IN BHIWADI

0

100

200

300

400

500

600

700

MicroSmall

MediumLarge

400

650

350

100


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TOTAL NO. OF INDUSTRIES SURVEYED

43

35

7

0

5

10

15

20

25

30

35

40

45

50

Small Scale Medium Large


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ASSESSMENT THROUGH PRIMARY

DATA COLLECTIONS

YOU HAVE BANKING ARRANGEMENT (LOAN)

FROM?

55%

40%

5%

Break-up of industries surveyed

In Bhiwadi

Outside Bhiwadi

No Banking tie-up


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2. YOU HAVE BANKING ARRANGEMENT WITH?

11

8

34

21

2 23

5

1 13

20

2

4

6

8

10

12

No. of Industries

Banking Tie-up in Bhiwadi


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3.HOW MUCH IS YOUR CREDIT FACILITY REQUIREMENT IN A

YEAR?

0

5

10

15

20

25

30

l 5

r.

5-15 r. 15-25 r. r

t 25

r.

29

2023

13

Yearly requirement of industries


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4. YOUR INDUSTRY NEED FINANCE FOR?

32%37%

12%7%

12%

05

10152025

303540

potential in small & medium enterprises for banking sector

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