Role of commercial banks in the development of MSME sector in India
Dr. Raghavendra NR
Micro, Small and Medium Enterprises (MSME) plays a dominant role in the generation of employment opportunities in a country. But these MSMEs are suffering from lack of financial resources. Among the sources of finance available to MSMEs the major source is loans from banks. Especially commercial banks are concentrating more on large scale and profitable industries that is why MSMEs are not in a position to get adequate loan from these banks. Central Government has recently announced that merging of syndicate bank with canara bank in the coming days. A case study of these two banks are taken into consideration to know the role of these banks in the development of MSME sector in the country. An attempt has been made to know the difference in lending by commercial banks towards MSME sector. T test is used to know the difference between Loan disbursed by canara bank and syndicate bank towards MSME sector. The difference in the average lending towards MSME sector between Canara Bank and Syndicate Bank found to be. Significant. (5% level of significance) (P=0.000592). Hypothesis H0 is rejected and H1 accepted that there is a significance difference in the Loan disbursed by Canara bank and Syndicate bank towards MSME sector. Canara bank contribution is comparatively more towards lending loan to MSMEs than Syndicate bank. They have to introduce some more schemes to MSME sector, to provide more benefits to new entrepeneurs in MSME sector to avoid taking loan from outside agencies.