Latest news with #SME
Economic Times
15 hours ago
- Business
- Economic Times
Beyond capital, capability building is critical for MSMEs to thrive: DBS Bank India's Sudarshan Chari
The bank invests significantly to enhance its digital capabilities and has rolled out a paperless post-approval journey for SME borrowers to ensure faster turnaround times and greater convenience. DBS Bank India, which offers a range of banking services for micro, small, and medium-sized enterprises (MSMEs) and individual consumers, sees immense potential in this segment. The local arm of Singaporean lender, DBS Bank, views MSMEs as critical enablers of the Indian economy and supports their growth through various insight-driven initiatives. In a freewheeling chat with ET Digital, Sudarshan Chari, Managing Director and Head of SME Banking, DBS Bank India, discusses some key enablers that can empower this segment to fully leverage the opportunities that lie ahead. Edited excerpts: The Economic Times (ET): What is the current composition of SMEs in DBS Bank India's overall loan portfolio, and what is your plan for increasing it? Why is this segment important to you? Sudarshan Chari (SC): Our SME business has grown at a high double-digit rate over the year as we aim to continue serving enterprises across key MSME hubs and remain a long-term partner for this segment. DBS combines superior digital offerings, Asian connectivity, tailored products and solutions, and a strong network to serve enterprises. ET: What are some of the most pressing financial challenges faced by MSMEs in today's time? How can banks make their journey more seamless? SC: Capital is critical, but for small businesses to truly thrive, capability-building is just as important. Beyond access to finance, MSMEs today need support in areas such as improving operational efficiency, tapping into new markets, and future-proofing their models. This includes adopting cloud-based accounting tools, upgrading supply chain systems, building digital invoicing and payment capabilities, and gaining better access to compliance frameworks. DBS Bank India empowers entrepreneurs across the value chain by offering access to knowledge, tools, and networks. It aims to be a trusted, long-term partner to this segment. Through ecosystem partnerships, we help small businesses unlock both scale and sustainability. DBS' Asian connectivity is a significant advantage for Indian SMEs looking to expand beyond domestic markets. This means they can leverage the bank's expertise in trade finance and foreign exchange to navigate international ecosystems more confidently. SMEs can benefit from its network and sectoral insights that help identify growth bank also empowers entrepreneurs through DBS BusinessClass, a community that connects SMEs to a dynamic network of business leaders, venture capitalists (VCs), specialists, and industry peers. Through this platform, SMEs receive the latest market insights, attend exclusive networking events, and gain access to programmes focused on digital transformation, sustainability, and market expansion—all designed to strengthen business capabilities and accelerate What are some of the challenges that businesses face when adopting sustainable practices, and how does DBS Bank help in making this transition easier? SC: As corporates and investors place greater emphasis on sustainability, enterprises across sectors are increasingly evaluating their supply chains to work with partners who demonstrate strong ESG credentials. In response, many SMEs are proactively stepping up their efforts to align with this shift towards responsible business. DBS remains committed to supporting these businesses on their journey to becoming future-ready by enhancing their capabilities and capacity in sustainability. This support extends beyond financing, including knowledge sharing, identifying tailored solutions to their unique challenges, and connecting them with a network of partners who can facilitate their transition. By enabling SMEs to navigate their sustainability journeys with guidance and access to relevant resources, the bank is helping build resilient, responsible enterprises that can navigate this evolving landscape. ET: How is DBS shaping its MSME lending strategy to support enterprises, particularly those led by women, rural enterprises, or those driving community development? SC: DBS Bank India views MSMEs as critical enablers of the economy and supports their growth through insight-led and need-based interventions. This begins with developing a strong understanding of their realities and the challenges they face. As part of these efforts, the bank commissioned the 'Women and Finance' study to better understand the needs of women report captured insights from 400 self-employed women across 10 major Indian cities. The study revealed that among those who opted for credit, bank loans were the preferred option for 21%, while a notable 25% used personal gold as collateral—unlocking its value to access formal access to capital, many women entrepreneurs called for mentorship (26%), support with government schemes (18%), and digital enablement (15%). These insights now inform how the bank designs tailored propositions for women-led businesses, working closely with its ecosystem partners. Additionally, through the DBS Foundation's flagship grant programme, innovative social enterprises and SMEs across Asia are awarded funding of up to Rs 1.6 crore (SGD 250,000). These grants help businesses scale their impact through product innovation, market expansion, R&D, and infrastructure development. ET: What are some of the biggest financing barriers for first-time or non-traditional MSME entrepreneurs, especially in tier II and tier III cities or informal sectors, and how is DBS working to close this gap? SC: First-time MSME entrepreneurs in tier II and tier III cities often lack traditional credit history or consistent documentation. In such cases, alternative data-based credit frameworks can help build a more accurate assessment of business performance, supporting prudent lending addition to finance, DBS Bank India collaborates with ecosystem partners to assist these entrepreneurs. Through DBS BusinessClass foundED, the bank connects entrepreneurs with advisors and peers through a series of pan-India events. These events include acceleration programmes that focus on digitisation, working capital, and social impact, helping these enterprises in becoming more resilient, formalised, and prepared for the future. ET: How does DBS Bank use digital tools and alternative data to assess creditworthiness for small businesses lacking traditional collateral or credit history? SC: For many small and early-stage businesses, limited credit history or lack of traditional collateral can be a barrier to accessing finance. To address this, lenders are increasingly turning to data-driven credit assessment frameworks that rely on alternative data. These may include GST filings, cash flow patterns, verified business transactions, and timely utility payments, which together offer a more comprehensive and dynamic view of a business's financial health. This helps improve the ability to assess emerging or informal enterprises and also supports faster, more informed, and inclusive decision-making, especially for first-time borrowers. ET: What new opportunities does digitalisation create for MSMEs with your support? SC: DBS Bank India believes digitalisation is a powerful enabler for MSMEs—not just in how they bank, but in how they run and grow their businesses. It opens up new avenues to improve efficiency, access new markets, and make smarter, faster decisions. The bank's goal is to help businesses embed digital capabilities into their everyday operations so they are better equipped to scale its mobile-enabled platform, DBS IDEAL, MSMEs gain real-time visibility and control over payments and collections, helping them manage cash flows more confidently. DBS's APIs integrate seamlessly with ERP systems like Tally, streamlining accounting and reconciliation. The bank has simplified processes through online account opening, e-documentation, and quick loan approvals, reducing friction and allowing entrepreneurs to focus on what matters most: growing their business. Further, it supports businesses in leveraging digital opportunities, especially as Indian MSMEs increasingly tap into e-commerce and the ONDC network. ET: What kind of mentorship is necessary for MSMEs today to get a better understanding of financial and non-financial tools to support their businesses? SC: For MSMEs to effectively leverage financial and non-financial tools, they require holistic support. Access to knowledge remains a challenge. Many MSMEs need guidance on managing cash flows, understanding cost structures, exploring financing options, and adopting digital tools such as ERP seek access to subject matter experts in areas such as compliance, supply chain management, strategic planning, business continuity, and preparing for SME IPOs. Banks can play a pivotal role in bridging this knowledge gap. For instance, DBS Bank India regularly organises knowledge seminars with ecosystem partners around these these businesses increasingly look to expand beyond domestic markets, mentorship becomes even more critical. This can help MSMEs become more resilient, agile, and growth-ready. Cross-border growth requires strong market understanding, infrastructure, and trusted financial partners. With its pan-Asia presence, DBS supports Indian MSMEs with sector expertise, financing solutions, and connections that enable access to global value chains. ET: Going ahead, what are some of the new initiatives in the pipeline that DBS Bank is planning for its SME borrowers? SC: DBS Bank India explores and implements new initiatives to better support its SME borrowers, aligning with evolving market needs and priorities. Most recently, on MSME Day, the bank announced a waiver of prepayment and foreclosure charges for all MSMEs registered under UDYAM, for both existing and new borrowers. This move enhances financial flexibility for these Bank India continues to broaden its product offerings for MSMEs, including the rollout of CGTMSE-backed working capital, trade finance, small-ticket LAP, and receivable financing propositions. The bank is also focused on working closely with SME borrowers to develop sector-specific propositions that create greater bank invests significantly to enhance its digital capabilities and has rolled out a paperless post-approval journey for SME borrowers to ensure faster turnaround times and greater convenience. Euromoney acknowledged these efforts and recently awarded DBS Bank India the title of 'Best Digital Bank' for SMEs in the country.
Time of India
a day ago
- Business
- Time of India
BSE raises bar for SME to mainboard migration with higher profit, shareholder requirements
India's oldest exchange BSE Limited on Monday strengthened the eligibility norm for listed SME companies for migration to mainboard category by enhancing the requirement of operating profitability to Rs 15 crores for last 3 financial years with minimum operating profit of Rs 10 crores in each of these financial years. It has also raised minimum number of public shareholders to 1,000 from 250. The previous criteria for SME migration to mainboard was positive operating profit for at least 2 out of 3 financial years. Productivity Tool Zero to Hero in Microsoft Excel: Complete Excel guide By Metla Sudha Sekhar View Program Finance Introduction to Technical Analysis & Candlestick Theory By Dinesh Nagpal View Program Finance Financial Literacy i e Lets Crack the Billionaire Code By CA Rahul Gupta View Program Digital Marketing Digital Marketing Masterclass by Neil Patel By Neil Patel View Program Finance Technical Analysis Demystified- A Complete Guide to Trading By Kunal Patel View Program Productivity Tool Excel Essentials to Expert: Your Complete Guide By Study at home View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Cardiologist: The Best Method for a Flat Stomach After 50 (It's Genius!) Lulutox Undo "As a responsible market infrastructure institution (MII) and a front-line regulator, BSE continues to strengthen its regulatory framework to enhance market integrity , investor confidence and economic growth. In line with this ethos, BSE has further strengthened the eligibility norms for both SME companies seeking migration to Main Board and for companies listed on other recognized stock exchanges seeking direct listing. The move is aimed at promoting transparency, disclosure and thereby improve the quality of listings," a BSE release said. The rule will also apply to companies listed on other recognised stock exchanges and seeking direct listing on the BSE. The exchange has further mandated market liquidity criteria where entity seeking to be on mainboard through migration/direct listing are required to have witnessed trading of at least 5% of the weighted average number of equity shares listed during past six months. The should also be trading on at least 80% of days during this 6 months period. Live Events Moreover, companies are also required to have net tangible assets of at least Rs 3 crores in each of the last 3 financial years and should have compliance track record for 3 years. More to come...
Business Times
a day ago
- Business
- Business Times
Economic Strategy Review's tech and innovation committee to boost AI adoption among firms, workers
[SINGAPORE] The recently formed committee on tech and innovation under the government's new Economic Strategy Review will look at how to help more companies adopt artificial intelligence (AI) and enable more people to gain fluency in the technology. Speaking to reporters after touring PwC Singapore's AI hub on Monday (Aug 11), Minister for Digital Development and Information Josephine Teo said sustained economic growth is not a given, 'so we will have to find ways to strengthen our economic strategies to be relevant to the current times'. This led to the creation of the government's economic strategy review , with one of its key pillars being the committee on tech and innovation, she added. A key area the committee will examine is how AI adoption can be broadened and deepened. This means looking at the number of companies that will adopt the technology meaningfully, and the number of people that will become meaningful AI practitioners in their business domains, said Teo. The committee is co-chaired by Minister of State for Digital Development and Information and Education Jasmin Lau and Senior Parliamentary Secretary for Culture, Community and Youth and Sustainability and the Environment Goh Hanyan. Goh, also present at the tour of PwC's AI hub, said in response to media queries on small and medium-sized enterprises' (SME) adoption of AI that 'we are currently at the process of meeting with new companies' to understand what they are facing on the ground and what they want to be supported by. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'It's incumbent for us to listen to the voices of businesses and even workers from companies big and small, to ensure that the whole economy benefits and is uplifted by this technology,' she added. The committee aims to address different companies' pain points and figure out how to support them in AI adoption. Companies with more resources can develop in-house solutions, but the question for smaller businesses is the way of improving access to pre-approved solutions, Goh noted. Acquiring AI skills to stay relevant Responding to The Business Times' question on how the committee intends to help SMEs overcome tight budgets and other practical challenges in adopting AI, she said that it is 'too early to tell' since the committee just started on formal consultations. 'Sometimes the best solutions may not come from the government. It's about learning from each other, learning from experts, and drawing the links,' she noted. In response to a question on AI replacing jobs, Goh said the committee will prepare workers to not get replaced and move into sectors that will benefit from the technology. 'We want to see how most employees can be equipped with AI relevant skills so that they can continue to play a part in the workforce of the future', said Teo, adding that this will be a very important part of the economic strategy review's work. She noted that workers who are acquiring AI skills will have a better chance of succeeding, compared to those who are not so ready. Wide-scale adoption of AI also ties in with her ministry's work related to Smart Nation 2.0 and National AI Strategy 2.0, she said. PwC launches new AI hub As part of the committee's work in engaging with companies on their AI Centres of Excellence, Teo and Goh toured PwC's AI hub, where they saw live demonstrations of the technology improving various business functions. The hub was launched on May 21 , with the PwC network aiming to commit US$4 million over a three-year period. In a written response to BT queries, PWC Singapore's AI hub leader Anthony Dias said that the hub aims to develop and scale AI capabilities, foster strategic alliances and help organisations build practical applications. 'Over the past year, PwC has worked with organisations worldwide to scale AI use cases across industries such as finance, healthcare, logistics, legal and the public sector,' he said. The hub's number of employees grew from four at inception to 15 at its launch in May. 'We are now looking to expand the team to 20 employees by the end of the fiscal year,' said Dias. While the hub's employees currently comprise AI researchers and data scientists, he said that PwC is exploring opportunities to include product managers, solution architects, business analysts and domain experts in areas such as tax, legal and sustainability. The hub is also supported by the Economic Development Board.
Business Times
a day ago
- Business
- Business Times
Tech and innovation committee to boost AI adoption among firms and workers
[SINGAPORE] The recently formed committee on tech and innovation under the government's new Economic Strategy Review will look at how to help more companies adopt artificial intelligence (AI) and enable more people to gain fluency in the technology. Speaking to reporters after touring PwC Singapore's AI hub on Monday (Aug 11), Minister for Digital Development and Information (MDDI) Josephine Teo said sustained economic growth is not a given, 'so we will have to find ways to strengthen our economic strategies to be relevant to the current times'. This led to the creation of the economic strategy review , with one of its key pillars being the committee on tech and innovation, she added. A key area the committee will examine is how AI adoption can be broadened and deepened. This means looking at the number of companies that will adopt the technology meaningfully, and the number of people that will become meaningful AI practitioners in their business domains, said Teo. The committee is co-chaired by Minister of State for Digital Development and Information and Education Jasmin Lau and Senior Parliamentary Secretary for Culture, Community and Youth and Sustainability and the Environment Goh Hanyan. Goh, also present at the tour of PwC's AI hub, said in response to media queries on small and medium-sized enterprises' (SME) adoption of AI that 'we are currently at the process of meeting with new companies' to understand what they are facing on the ground and what they want to be supported by. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'It's incumbent for us to listen to the voices of businesses and even workers from companies big and small, to ensure that the whole economy benefits and is uplifted by this technology,' she added. The committee aims to address different companies' pain points and figure out how to support them in AI adoption. Companies with more resources can develop in-house solutions, but the question for smaller businesses is the way of improving access to pre-approved solutions, Goh noted. Acquiring AI skills to stay relevant Responding to The Business Times' question on how the committee intends to help SMEs overcome tight budgets and other practical challenges in adopting AI, she said that it is 'too early to tell' since the committee just started on formal consultations. 'Sometimes the best solutions may not come from the government. It's about learning from each other, learning from experts, and drawing the links,' she noted. In response to a question on AI replacing jobs, Goh said the committee will prepare workers to not get replaced and move into sectors that will benefit from the technology. 'We want to see how most employees can be equipped with AI relevant skills so that they can continue to play a part in the workforce of the future', said Teo, adding that this will be a very important part of the economic strategy review's work. She noted that workers who are acquiring AI skills will have a better chance of succeeding, compared to those who are not so ready. Wide-scale adoption of AI also ties in with MDDI's work related to Smart Nation 2.0 and National AI Strategy 2.0, she said. PwC launches new AI hub As part of the committee's work in engaging with companies on their AI Centres of Excellence, Teo and Goh toured PwC's AI hub, where they saw live demonstrations of the technology improving various business functions. The hub was launched on May 21 , with the PwC network aiming to commit US$4 million over a three-year period. In a written response to BT queries, AI hub leader of PwC Singapore Anthony Dias said that the hub aims to develop and scale AI capabilities, foster strategic alliances and help organisations build practical applications. 'Over the past year, PwC has worked with organisations worldwide to scale AI use cases across industries such as finance, healthcare, logistics, legal and the public sector,' he said. The hub's number of employees grew from four at inception to 15 at its official launch in May. 'We are now looking to expand the team to 20 employees by the end of the fiscal year,' noted Dias. While the hub's employees currently comprise AI researchers and data scientists, he said that PwC is exploring opportunities to include product managers, solution architects, business analysts and domain experts in areas such as tax, legal and sustainability. The hub is also supported by the Economic Development Board.
Economic Times
a day ago
- Business
- Economic Times
Trade Wars and Tariffs: The hidden cost on India's affordable housing sector
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads MSMEs: The Economic Backbone at Risk Tariffs Threaten Growth and Housing Demand Financial Risks for Housing Finance Companies The Road Ahead The escalating trade tensions between India and the United States, highlighted by the imposition of steep 50% tariffs, are more than just a disruption in bilateral trade. If unresolved or unmoderated, these tariffs threaten to severely impact vulnerable sectors of the Indian economy — most notably, the affordable housing segment, which depends heavily on the country's MSME and SME Prashant Thakur, Executive Director – Research & Advisory at ANAROCK Group, warns that affordable homes priced at INR 45 lakh or less were already struggling to recover from the aftermath of the COVID-19 pandemic. The new tariffs imposed under the Trump administration risk extinguishing even the faintest hope of revival for this housing in India is primarily driven by demand from the workforce employed by Micro, Small, and Medium Enterprises (MSMEs) and Small and Medium Enterprises (SMEs). These enterprises are deeply woven into India's export ecosystem and form the backbone of the economy. However, ANAROCK data reveals that in the first half of 2025, the affordable housing segment's share of total home sales in India's top seven cities fell drastically to just 18%. This is a stark decline from the 38% share recorded in put it into perspective, of approximately 1.9 lakh units sold in H1 2025, only around 34,565 units belonged to the affordable category. Furthermore, new launches in this segment have shrunk from 40% in 2019 to a mere 12% in the first half of contribute nearly 30% of India's GDP and account for over 45% of the country's exports. The sector has shown remarkable growth, with exports increasing by 228% over the past four years—from 52,849 in FY 2020-21 to 173,350 in FY 2024-25. Together, MSMEs and SMEs employ over 260 million Indians, formally and informally, across labour-intensive sectors such as textiles, engineering, auto components, gems and jewellery, and food massive workforce forms the core customer base for affordable housing. The segment caters to nearly 17.76% of India's population, which is about 1.46 billion imposition of tariffs threatens to put a halt to the otherwise promising opportunities for Indian MSMEs to expand their export footprint, establish global supply chains, and diversify revenue streams. The tariffs act like a 'chakka jam' (roadblock) on the economic vehicle driving affordable homeownership dreams for millions in India's lower-income Thakur explains that disruption in income prospects for this vast workforce due to tariffs could derail demand for affordable housing, which is highly sensitive to income changes. This will inevitably impact sales, pushing developers to cut back on new launches amid tightening working capital conditions and ongoing input cost inflation since the finance companies (HFCs) that cater predominantly to affordable housing buyers face growing risks. The potential for increased loan defaults looms large if demand continues to fall, while lower sales will also reduce new loan disbursements, further tightening liquidity in the affordable housing sector stands at a critical crossroads. Its future depends heavily on timely government intervention through coordinated policy measures, fiscal safeguards, and buyer-centric support. Once the flagship of India's housing vision and a key driver of financial stability for millions, affordable housing now hangs in the these challenges are met with strategic solutions, the dreams of homeownership for millions in India's MSME workforce could become yet another casualty of global trade tensions.
