Cluster Based Finance Initiative  

Oleh:

Sengupta, Souvik ; Parikh, Nimesh ; Mogera, Sudhakar ; Mehrotra, Zubeen ; Sharma, Sumit ; Deshpande, Kedar ; Kataria, Virag ; Jadhav, Sunil Y

Jenis: Article from Proceeding
Dalam koleksi: 12th ANQ Congress in Singapore, 5-8 Agustus 2014, page 1-15.
Topik: Finance; Innovation; Specialized Funding; Industry Specific Funding; Market expansion
Fulltext: PS-1.9-P0324.pdf (850.54KB)

Isi artikel

Micro, Small and Medium Enterprises (MSME) Sector is acknowledged growth engine for Indian Economy. Based on publically available data 45mn MSMEs, borrowed in excess of INR50bn in Fiscal 2012 from banking channels. Significantly, 95% of MSME businesses yet remain financially underserved and outside institutionalized finance markets. This underserved portion of INR 950bn market comprises large number of units clustered around industrial areas producing and selling related or complementary products having financing requirements in range of Rs5-20mn; perceptibly different from RCF’s existing portfolio. RCF (Reliance Commercial Finance) introduced retail financing initiative for such clustered units with intention of... - Offering such clustered MSMEs benefits of organized financing services, - Providing Financial Advisory Services, - Credit Risk diffusion via larger volumes for RCF, and - Furthering Central Government mandate of Priority Sector Lending (PSL) and Financial Inclusion Senior in-house team and CRISIL spent three months identifying promising clusters using key-metrics like; Business size and growth-prospects, operating-profitability, total-debt requirement and credit worthiness of MSMEs. 110 clusters were thus short listed and based on RCF (RELIANCE COMMERCIAL FINANCE)’s distribution strength and risk-appetite, 24 clusters were selected. Within twelve months of implementation, - 540 business units approached RCF for retail-loans aggregating INR 4150mn - Accelerated Credit risk diffusion process following greater numbers of retail loans - Held 23 events focusing on financial advisory with 3000 MSME units in attendance. - Facilitated Financial Inclusion following qualification of this loan-pool under PSL Prospectively, cluster specific products will be introduced, aimed at deeper cluster engagement in segments like Insurance, Mutual-Funds and Wealth-Management

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