Fund Of Funds For Rs 50,000 Crore Equity Infusion In MSMEs To Be Operational Soon: SBI’s Rajnish Kumar

Credit and Finance for MSMEs: The Fund of Funds is likely to benefit over 25 lakh MSMEs and will be operated through a Mother Fund and a few daughter funds to enable small businesses to expand in size and capacity apart from encouraging them to list on the main board of the stock exchanges.

Credit and Finance for MSMEs: The Fund of Funds announced by the Finance Minister Nirmala Sitharaman in May as part of the Atmanirbhar Bharat initiative to infuse Rs 50,000 equity in MSMEs is likely to be operationalised soon, according to State Bank of India (SBI) Chairman Rajnish Kumar. Highlighting the support offered by banks to help Covid-hit MSMEs recover, Kumar said, “one is the immediate help for improving the liquidity of MSMEs; second, about the unit (if) in trouble then support by way of subordinated debt which is guaranteed by the government and third is Fund of Funds which I presume would also get operationalised very soon.” He was addressing the virtual MSME Conclave on Monday organised FICCI Karnataka State Council.

The fund set-up with a corpus of Rs 10,000 crore was approved by the Cabinet in June along with the revision in the definition of MSMEs. The fund “will benefit over 25 lakh MSMEs under stress,” MSME Minister Nitin Gadkari had said in a statement in May. The fund is expected to encourage MSMEs to list on the main board of the stock exchanges with the equity infusion. Finance Minister Nirmala Sitharaman had announced Rs 3.7 lakh crore stimulus package in May that also included the Rs 3 lakh crore emergency credit scheme and Rs 20,000 crore subordinated debt for stressed MSMEs.

Source: Financial Express

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