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Time of India
a day ago
- Business
- Time of India
Cooperative banks need to change policies for MSME lending, says Maharashtra State Cooperative Bank chairman
1 2 3 Pune: Maharashtra State Cooperative Bank's chairman Vidyadhar Anaskar has said that cooperative banks need to change their decision-making process while issuing loans to micro, small and medium enterprises. The lenders should change their approach to project-based finance instead of focusing on security collateral, he said on Sunday. "Many banks insist on a personal property collateral while issuing loans. This is not the intent of MSME financing." He was speaking at 'Banking and MSME Sector Conclave 2025' organised in Pune by Sahakar Bharati and Global Indian Origin Network. Dinesh Gandhi, chairman of Sahakar Bharati, said MSMEs support close to 11 crore families, making the sector one of the most important employers in the country. Speaking on lending to the real estate sector, Anaskar said the housing segment is very lucrative for cooperative banks as such loans provide better returns and assurance of repayment based on the goodwill of developers who follow good practices. Additionally, the property offers strong collateral while issuing loans, the MSCB chairman said. "However, there are limitations for banks in commercial real estate lending as it is not classified as a priority sector by the Reserve Bank of India." The reason is that the real estate sector receives dual financing in the form of the money they get from buyers during various stages of construction and also the loan taken from banks, he pointed out. Anaskar also sought a constructive approach from auditors and accountant consultants to expedite project finance. A lot of first-generation entrepreneurs start their businesses in the form of micro and small enterprises, Indraneel Chitale, managing partner of Chitale Bandhu Mithaiwale, said at the event. However, he raised a concern that these business owners are stuck in the paperwork while taking loans from banks, and lenders should work towards reducing the red tape so that they can concentrate on developing their businesses.
Time of India
4 days ago
- Business
- Time of India
Rs400cr raised via bonds, MSCB plans loans to NDCCB, other district banks
Nagpur: Maharashtra State Cooperative Bank (MSCB), which has raised Rs400 crore as tier-2 capital through bonds issue, plans to seek additional time from the Reserve Bank of India ( RBI ) to raise another Rs100 crore. The ultimate plan is to lend part of the amount to the beleaguered Nagpur District Central Cooperative Bank (NDCCB), apart from funding other district-level cooperatives. The funds will be provided to NDCCB as a short-term loan to improve its liquidity. With its board of directors expelled, MSCB is itself run by an administrator — a veteran banker, Vidyadhar Anaskar. Last year, MSCB took over the management of NDCCB as an institutional consultant. This was the first-ever such arrangement in the state's cooperative sector. On Tuesday, the state govt also issued orders to appoint MSCB as the institutional consultant of Nashik District Central Cooperative Bank. MSCB is a part of the three-tier cooperative banking system in the state. Funds flow through MSCB to respective district central cooperative banks (DCCBs), from where they reach the primary agriculture cooperative societies at the village level. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo "Now, the money raised by the bonds is planned to be deployed in assisting the DCCBs across the state," Anaskar told TOI. NDCCB has not been able to recover from the losses caused by an Rs150 crore investment scam two decades ago involving the then chairman and former Congress MLA from Saoner, Sunil Kedar. The losses had kept it under an administrator instead of an elected board of directors. Now, it's under the MSCB's control. MSCB replaced a cooperatives department officer as the administrator for NDCCB. Normally, an individual takes over as an administrator in a crisis-ridden cooperative bank. Anaskar told TOI that MSCB was able to raise Rs400 crore at 8.5% during the two-month window allowed by the RBI. The plan is to raise Rs500 crore in all, and the RBI will be approached to allow additional time. "MSCB has been able to raise funds at much more competitive rates compared to other cooperatives," he said. Anaskar said there are five to six crisis-ridden DCCBs in the state. These include the banks in Wardha, Nagpur and Buldhana in Vidarbha. "MSCB is keen to deploy the funds in these DCCBs," he said. Get the latest lifestyle updates on Times of India, along with Eid wishes , messages , and quotes !
