Advisory Board:Mr. Sivakumar G.,Executive Vice President (Credit)Mr. John Thomas,Sr. Gen. Manager (Business Development Dept. )Mr. Paul V.L.,General Manager (Admin)

Editorial Board:Mr. Peter A. D.,Dy. GM & Principal, SIBSTC, ThrissurMr. M. T. Jose,Dy. GM (Personnel)Mr. Ajit C Jacob,Dy. GM (CRD)Mr. Biju E. Punnachalil,AGM (IRMD)Mr. Francy Jos E.,CM (CCO)Mr. Nanda Kumar C.,Manager, STCMrs. Sherin Thomas,Clerk, HO Inspection & Vigilance

Objectives:

To instil in the bank staff a sense of belonging and involvement in the bank’s affairsTo appreciate and applaud the individual achievements of our members of staffTo act as a communication medium between management and the staffTo increase the professional competence of our bank staff

Corporate Family Magazine of

South Indian Bank

Publisher:Mr. Thomas Joseph K.Executive Vice President (Operations)

EditorMrs. Sheela Davis, CM, Staff Training College

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Inauguration of MCCPC. Sri. V.G. Mathew,MD & CEO lighting the lamp. Sri. Thomas Joseph K., EVP (Operations), Sri. Sivakumar G., EVP (Credit), Sri.Benoy Varghese, SGM (Credit) & Sri. Balakrishnan K.N., JGM (MCCPC) are seen.

Layout, Typeset & PrintingLumiere Printing WorksThrissur 680 020

Inside

Message

Articles

MSMEs – The “POWER HOUSE” of Indian Economy Romita ChakrabortyMSME in India: Opportunities, Issues & Challenges Vivek ViswanCredit Guarantee Fund Trust for Micro and Small Enterprises Lakshmi KrishnakumarAccident – Story of a Survivor Nikhil A.B.“UTSAV-2017-A gala to cherish” Glaxon K.J.Pages from the diary notes of a banker Prakash M.K.Stand Up India Ramya K.Know your Branch & Know your BanKKerala Start-up Mission Jenish Paul

Regular Features

VISIONTo be the most preferred bank in the areas of customer service,

stakeholder value and corporate governance.

MissionTo provide a secure, agile, dynamic and conducive banking environment to customers with commitment to

values and unshaken confidence, deploying the best technology, standards, processes and procedureswhere customer convenience is of significant importance and to increase the stakeholders’ value.

Mr. Raphael T.J, Senior General Manager (Technology and Marketing) and Mr. Sony A, DGM (IT) South Indian Bank receiving the Banking TechnologyAwards instituted by IBA from RBI Deputy Governor Mr. Viral Acharya, and Padma Vibhushan Mr. Raghunath Mashelkar.

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‘SIB Scholar. Our MD & CEO Sri. V.G. Mathew and Metroman Dr. E. Sreedharan, along with the students from various colleges in Kerala, who won the‘SIB Scholar’. Sri. Sivakumar.G E.V.P. (Credit) and Sri. V.L. Paul, G.M. (Admin) also seen.

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ISO 27001:2013 : Our MD & CEO Sri. V.G. Mathew receiving the ISO 27001:2013 certificate from BSI Group India’s MD Sri. Venkataram Arabolu.Also seen Sri. Raphael T.J.,Senior General Manager and CIO.

MD & CEO Speaks ....

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“ “The latest quarterly results of our Bank announced on 11th July2017 shows that MSME business grew Y.O.Y by 10.85%. WhileQ1 generally registers a tepid growth, we will all agree that thegrowth trend needs to at least double during the rest of theyear.

It is often argued that the banking system has grown only inlow single digits and hence our growth is pretty good. But weneed to remember that, given our relatively small base, we canand need to grow much faster than the larger competitors.

Why is MSME so central to our growth plans?

The relatively small ticket MSME loans, covering a large numberof customers belonging to a variety of industrial and tradesectors, offer opportunities for well diversif ied and riskcontrolled growth of advances. MSME relationships presentmultiple opportunities of engagement with the customer. Apartfrom the primary credit requirements of working capital financeand term loans, such customers need an array of products suchas LCs, BGs, Forex Products, Investment products, Insurancefacilities, Salary accounts, POS machines, Current and Savingsaccounts and personal credit products such as Housing Loans,Auto Loans, Personal Loans etc. Since most of the MSMErelationships are on sole banking basis a growing MSME venturecan bring many valuable business opportunities to the Bank. Astrong MSME account is hence an anchor relationship for anumber of other ancillary business in the retail space all ofwhich are very important for our Bank.

The current issue of Siblink will discuss a number of theseaspects in greater detail.

I sincerely wish that each one of our branches would appreciatethe importance and value potential of MSME business and worktirelessly towards achieving our chosen mission of becoming aRetail Banking Power House by focusing on MSME opportunitiesin their areas.

Wishing you all the best,

V.G MathewManaging Director & CEO

.... a growing MSME venture can bring many valuable businessopportunities to the Bank. A strong MSME account is hencean anchor relationship for a number of other ancillary businessin the retail space all of which are very important for ourBank.

“AN OVERVIEW”Brief Idea:

“Changes are the driveway to success”; rightlysaid so, several changes had occurred in theglobal economy since the 1990s.Economieshave become more independent and themarkets have become more open andcompetitive. Developments in internationaltrade and finance have altered the pattern ofcommodity and investment flows all over theworld. Technological upgradations in emergingsectors e.g. biotechnology and the knowledgebased industries, is expected to drive theeconomic growth. The new policy frameworkthat has emerged at the beginning of 21st

century is more outward oriented, lessrestrictive, and more flexible in terms ofstrategies.

Small and medium enterprises are thebackbone of industrial development that havealways represented the model of economicgrowth and upliftment, contributing highestto domestic production, signif icant exportearnings, low investment requirements,employment generation and foreign exchangeearnings of the nation with low importintensive activities.

MSME sector has emerged as a dynamic as wellas prominent sector of the economy. There isa growing trend that the Micro, Small andMedium Enterprises play a catalytic role in thedevelopment process of most economies. Thisposition gets reflected in the form of theirincreasing number and rising proportion in theoverall product manufacturing, exports,manpower employment, technical innovationsand promotion of entrepreneurial skills. InIndia, the MSME sector is the second largestmanpower employer, after agriculture and theoutput from this sector alone constitutes 40percent share of the value added in themanufacturing sector and one third of nationalexports.

The importance of Micro, Small and Mediumenterprises (MSME) for its contribution in thegrowth of Indian economy is something thatneeds to be addressed. However, with the

MSMEs – The “POWER HOUSE” of Indian Economy(Turning Potential to Profit)

changing focus from economic growth toinclusive growth, MSME sector’s role in thesocio economic development of India needs tobe understood, explored and facilitated. Theopportunity in MSMEs exists; however, the factremains that most of the funding goes to thelarger and more solvent MSMEs and to thosewho have business linkages with largecorporates. The banks compete with each otherto grant loans to the top running MSMEs.

Emergence history:The Indian economy is expected to grow by over8% per annum until 2020 and can probablybecome the third largest after China and US by2032 and second largest in the world ahead ofUS in 2050. The emergence background ofMSMEs in India can be summed up as follows;

1. The emergence of MSME is based onGandhi model.

2. During pre liberalization before 1991 Indiaadopted Industrial policy resolution 1948that defined the role of state in industrialdevelopment for the first time.

3. At that time India accorded high priority tosmall and medium enterprises.

4. Despite numerous protection and policymeasures MSME has remained mostly small& technologically backward.

5. The scenario of small scale sector changedwith industrial policy establishment in1991.

6. Liberalization came into existence. It wasthe post liberalization era (1991 to 2006)that reflected the growth of SSI’s. In 1991the growth rate of SSI was almost 3 timesof the total industrial sector from 1992 to1995.

7. However in 1995 the growth rate wasslightly lower but again it increased in1996.

8. It is encouraged by setting up of MSMEDAct, 2006.

Why MSME??MSME IS THE BEST REVIVERIT IS NOT A SECTOR OF ECONOMY BUT ACATEGORY OF ECONOMY

Industries coming under MSME:In accordance with MSMED Act, 2006, thevarious types of industries coming undermanufacturing and service sector can broadlybe subdivided into the following categories;

Classification of MSMEs:

Romita ChakrabortyAsst. ManagerBr. Behala

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“MSMED ACT, 2006”-BACKBONE OF MSMEsThe conceptual and legal framework for smallscale and ancillary industrial undertakings isderived from the Industries Development andRegulation Act, 1951. The Act provided thenecessary powers to the Central Governmentto amend the provisions of this act from timeto time so as to encourage small scale andancillary undertakings.

The Small and Medium EnterprisesDevelopment Bill 2005 which was enacted inJune 2006 was renamed as “Micro, Small &Medium Enterprises Development Act, 2006”aims at facilitating the promotion anddevelopment of small and medium enterprises.Various notifications issued by the CentralGovernment from time to time relating toincrease in slap rate of investments in plant &Machinery for manufacturing enterprises andequipments in service enterprises provides aclear cut proof that the economy of our countryis striving towards achieving the economies ofscale by increasing the volume of productionof goods.

The Micro, Small and Medium EnterpriseDevelopment Act, 2006 (MSMEDA) extends thescope to accomplish many long -standing goalsof the government and stakeholders in theMSME sector including the service sector.

The salient features Micro, Small and MediumEnterprises Development Act, 2006 are,1. Industry replaced by enterprise which

includes service enterprises also.2. Sector enlarged to cover medium

enterprises.3. Constitution of MSME Board.

4. Simplification of registration procedure.5. Progressive credit support.6. Penalty for delayed payments.7. Provision for exit policy.

enterprises are some of the other features ofthis legislation.

The Government has also announced a PolicyPackage for Stepping up Credit to Small andMedium Enterprises assuring, inter alia, a 20per cent year-on-year growth in credit flow.

PRESENT INDIAN SCENARIOAccording to the fourth All India Census ofMSMEs , more than 92 per cent of enterprisesare in the unregistered sector and these accountfor more than 81 per cent of employment. Lessthan 8 per cent of the enterprises are in theregistered sector accounting for more than 18per cent of employment. As expected, the top10 in terms of the number of MSMEs isdominated by the larger states with UttarPradesh at the top with 4.4 million MSMEs. WestBengal has around 3.7 million followed by TamilNadu (3.3 million), Maharashtra (3.1 million),Andhra Pradesh (2.6 million) in the top five.The other states in the top 10 are Kerala,Gujarat, Karnataka, Madhya Pradesh &Rajasthan.

MSME sector which has large employmentpotential of 59.7 million persons over 26.1million enterprises, is considered as an enginefor economic growth and for promotion off inancial inclusion in rural areas. MSMEsprimarily depend on bank credit for theiroperations.

Bank credit to MSME sector witnessed a CAGRof 31.4% during the period March 2006 toMarch 2012. Of total credit to MSME, publicsector banks contributed the major share of

This Act provides the first-ever legal frameworkfor recognition of the concept of “enterprise”(comprising both manufacturing and services)and integrating the three tiers of theseenterprises, namely, micro, small and medium.Apart from clearer and more progressiveclassification of each category of enterprises,particularly the small, the Act provides for astatutory consultative mechanism at thenational level with wide representation of allsections of stakeholders, particularly the threeclasses of enterprises; and with a wide range ofadvisory functions.

Establishment of specif ic Funds for thepromotion, development and enhancingcompetitiveness of these enterprises,notification of schemes/programmes for thispurpose, progressive credit policies andpractices, preference in Governmentprocurements to products and services of themicro and small enterprises, more effectivemechanisms for mitigating the problems ofdelayed payments to micro and smallenterprises and simplification of the process ofclosure of business by all three categories of

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Mrs. Radhika Varma C.K., Senior Manager, South Indian Bank Eruvelibranch receiving Nari Shakthi Puraskar Award for the year 2017 fromHis Excellency Sri. Pranab Mukharjee, President of India on behalf ofTripunithura Kathakali Kendram Ladies Troupe in a royal function con-ducted at Rashtrapathi Bhavan, New Delhi on 08-03-2017 on WorldWomen’s Day. Mrs. Radhika Varma is a founder member of this ladiestroupe.

Team Siblink Congratulates Mrs. Radhika Varma and her team members

Nari Shakthi Puraskar Award 2017

Our MD & CEO Sri. V.G. Mathew along with Sri. Elias George, MD, KochiMetro inaugurates the first Plastic Bottle Recycling Machine installedat Palarivattom Metro Station

National Payment Excellence award was received by Sri. Bobby James,SGM-Inspection & vigilance and Sri. Sony A, DGM-Digital Division fromSri. N. S. Vishwanathan, Deputy Governor, RBI, on 8th March 2017 in thepresence of Sri. Balachandran M, Non Executive Chairman, NPCI, Sri. A.P.Hota, MD & CEO, NPCI at a glittering event held by NPCI.

Plastic Bottle Recycling Machine at KochiMetro Station

National Payment Excellence Award

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76%, while private sector banks accounted for20.2% and foreign banks accounted for only3.8% as on March 31, 2012.

Contributions and Performance of MSMEsin India(Approx):

adopted conservative policies to minimize bothcredit risk and cost of delivery. They have takenfar greater comfort in financing formal andmedium enterprises, leaving a gap in themarket. Over the years, India has witnessed theevolution of various models to try and fill thisgap and meet the credit needs of theunorganised sector.

Non-banking finance companies (NBFCs) withlocalised presence and domain knowledge havestarted to look at small business finance marketas an opportunity. Presently, the small businessfinance market comprises of NBFC-MFIs, largeand old NBFCs along with new NBFCs. Theaggregate AUM(Assets under management) ofNBFCs focussing on small business financingis estimated at INR 33,000-35,000 crores.Within this segment, large NBFCs dominate themarket, catering to borrowers in both the formalsector, who are able to produce documentedproofs of income, and the informal sector. LargeNBFCs dominate the market with over 90% ofthe aggregate AUM. Other players includeNBFCs, a number of whom have partnered withIFMR Capital, to focus on mortgage loans orsecured and unsecured loans to smallbusinesses.

Microfinance emerged as a step forward inaddressing the continued challenge of financialinclusion. Some MFIs such have even startedoffering Individual Loans to customers withlong standing relationships, while others havecreated a small customer base of individual runmicro enterprises.

Non-banking financial companies (NBFCs) witha sectoral focus on MSME finance have steadilydeveloped their business. Their unique modelof underwriting and credit delivery has helpedthem scale-up financing to small businesseswhile maintaining strong portfolio quality. Theloans offered facilitate occupational needsincluding, equipment purchase, businessexpansion, technology upgradation andworking capital requirements.

Over the past 5-7 years, newer NBFCs sensingopportunity have made a foray into SME lendingwith innovative business models. These NBFCsanalyse informal records that banks generallydo not accept, and conduct background checkson potential customers through an exhaustiveevaluation process.

A number of private equity firms have expressedan interest in these originators at their early

stages of growth. Furthermore, it is interestingto note that a number of originators havedeveloped their own niche of operations to meetspecif ic gaps – working capital needs ofcorporates, equipment f inancing for largerMSMEs, ongoing business requirements forsmaller businesses etc. Others have focused ondeveloping their networks in specif icgeographies.

Major Schemes implemented to supportMSMEs:

Credit SupportPublic sector banks advised to double theflow of credit to MSMEs within 5 years (20%annual growth)A minimum of 40% of bank credit earmarkedfor priority sector lending which includesloans to MSEs for both public and privatesector banksSpecialised SME Bank branches in industrialclusters for smooth flow of credit to MSMEsOne Time Settlement (OTS) scheme forsettling NPAs of MSMEs

Technological SupportCredit Linked Capital Subsidy Scheme forTechnology Upgradation

Scheme meant to improve quality ofproducts by technology upgradationInvestment upto INR 10 million (US$250,000) eligible for support withsubsidy upto 15% on investment.

Testing Centres for Quality Certification Tool Rooms and Training Centres for skillupgradationIncentive scheme for obtaining ISOCertification by MSEs

Marketing Assistance and Export PromotionSupport for participation in trade fairs andexhibitions – national as well asinternational.Training programmes on packaging forexports.Purchase preference in Governmentprocurement.Market Development Assistance Scheme forpublicity, market studies and adoption ofmodern market practices

Cluster Development ProgrammeCluster formation has been consideredimportant for MSME development. A cluster maybe def ined as a local agglomeration ofenterprises (mainly SMEs, but often alsoincluding some large enterprises), which are

Evolution of MSME lending:Adequate and timely availability of Finance isone of the most important key inputs for anybusiness. This is equally applicable whilesetting up of a MSME unit by an entrepreneur.Micro, small or medium business owners aregenerally first time entrepreneurs with verylittle capital or without capital, need not onlytechnical, marketing and managerial supportbut also require the much needed seed capitalto start the business. Many MSME units alsoneed additional capital for technology upgradation, capacity expansion growth, andmarketing and for imports and exports. Banksin India have been providing financial facilitiesto numerous businesses through their branchoffices, regional offices in across the lengthand breadth of the country.

The Micro, Small and Medium Enterprises(MSME) sector has consistently grown at aquicker pace than India’s GDP, but has not beensupported by adequate financing opportunities.This is largely because many of thesebusinesses are in the informal segment, andlack proper documentation and liquidcollateral, making underwriting difficult forbanks.

Traditionally, banks consider lending to smallbusinesses a relatively risky business, and have

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Inaugurations

Inauguration of new Offsite ATM at Mini Civil Station, Pathanapuram by Rev. Fr.K. V. Paul (Secretary, Mount Tabor Daira) in the presence of Mr. Shaik Pareed(Ward member, Nadukkunnu), Mr. K. S. Satheeshkumar(Dy. Gen. Manager and Head,RO Thiruvananthapuram), Mr. Harikrishnan S. (Branch Head, Pathanapuram)

Inaugural ceremony of new onsite ATM attached to Pune Viman Nagar Branch, by Mr.Jagdish Mulik (MLA, Wadgaonsheri Constituency) in the presence of Mr. Vijith S(Regional Head, Pune), Ms.Manisha Shrivastava (Branch Head, Viman Nagar)

Inaugural ceremony of our 843rd branch at Tirupati under Hyderabad Region, by Smt.M. Suguna (MLA, Tirupati Constituency) in the presence of Sri. ChadalawadaKrishnamurthy (Chairman, Tirumala Tirupati Devasthanam), Mr. John C. A (DeputyGeneral Manager and Head, RO Hyderabad)

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Inaugural Ceremony of new Offsite ATM at Seemas Wedding Collection, Aluva byMs. Lissy Abraham (Chairperson, Aluva Municipality) in the presence of Mr. ReddyN. J., (JGM and Regional Head, RO Ernakulam), Mr. K. P. Kunjumohammed (MD,Seemas Textiles), Mr. Manu Jose( Senior Manager and Aluva Branch Head

Inauguration of Haripad Branch by Prof. Sudha Suseelan (Chairperson, HaripadMunicipality). Mr. Peter A. D. (Dy Gen. Manager & Regional Head, Thiruvalla),Mr.Baburaj B. (Councillor, Haripad Municipality), Mr. Reswin R Nath (Branch Manager,Haripad), are seen.

Inauguration of TBD, Bangalore by Head & DGM (TBD), Mr. SreekumarChengath in the presence of Mr. Joseph T P, AGM (RO-Bl’re) and Mr. SureshSrinivas Rao, SM & Center Head (TBD-Bangalore).

producing and selling a range of related andcomplementary products and services.

International Cooperation ProgrammeProvides exposure to MSMEs to the latesttechnologies, manufacturing practicesprevalent in their f ields in differentcountries.Encourages their participation ininternational exhibitions for exports.

SWOT Analysis :By looking into the strength, weakness andopportunities of MSME in India, the followingsuggestions can be given for economicdevelopment of the country in general,

1. A cluster centric development plan for eachpotential clusters may be prepared for longterm development.

2. District Industrial Centers should beproactive in providing help both to theentrepreneur and bankers.

3. There is need for making handloom andhandicraft sector more market friendly andcompetitive to strengthen MSME.

4. Private sector participation may beencouraged.

“SLOW BUT STEADY STEP TOWARDS FUTURE”

THINK ABOUT IT???

MSME is still a highly untapped sector………….

Though Banks have lend around Rs 8 trillionto MSME sector, MSME sector is still underfunded and badly in need for capital infusion.According to International Finance Corporation(IFC), MSME sector faces a severe capitalshortage of Rs 32.5 trillion. Out of this, debtshortfall is Rs 26 trillion. This is the shortfallthat the organised financial sector will have toprovide to MSMEs to ensure that they areproperly capitalised and can continue to grow.For the banks, the challenge is to access andtap the wide MSME segment and for smallbusiness owners to access finance. The keyproducts through which banks lend to MSMEis working capital finance (in form receivablediscounting and / or basis trade assets), loanvehicle / equipment purchase, project finance,and long term finance. The hurdles faced byMSME in accessing f inance is lack ofcomprehensive formal documentation relatingto accounts, income and business transactions.

Nearly all banks prefer to lend to MSMEs onlyagainst collateral. Current trend is that majorityof lending to MSME sector is against propertymortgaged by promoters or owners or partnersof MSME unit to the bank. A significantly largechunk of MSME loans between Rs. 30 millionto Rs 150 million are actually nothing but LoanAgainst Property (LAP). This t is actually becauseof the risk framework adopted by Banks to avoidbad loans in their portfolio.

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Handing over of Haemo Dialysis Unit to Bishop Alappat Mission Hospital, Karanchira under CSR initiative inthe presence of our Director Dr. John Joseph, Mr. Paul Antony Maliakal (Asst. Gen. Manager & Head, ROIrinjalakuda), Mr. Silvan Antony (BM, Karanchira), Rev. Sr. Dhanya Bastin (Provincial Superior, Irinjalakuda FCCcongregation

Steps taken by central Government to address thisissue:To channelize credit flow to the MSMEs andreduce the fund gap, the Reserve Bank of India(RBI) has now compelled banks specific targetsfor lending to MSME as part of the PrioritySector Lending norms. In April 2015, the RBImandated banks to lend 7% of their annualtotal lending to micro enterprises. This is aremarkable moment as far as MSME segmentis concerned and is likely to go a long way toresolve the access to finance problem facedby MSME from a policy perspective.

Additionally, Reserve Bank of India (RBI)proposed setting up of credit rating agencies.

In pursuance with this suggestion, SME RatingAgency (SMERA) was incorporated by SIDBI,banks and Dun and Bradstreet. They haveintroduced various rating products to evaluateand rate MSMEs, helping MSMEs to access bankfinancing easily and at better terms.

To address and resolve concerns of lack ofadequate collateral, banks are encouraged tooffer collateral free loans, wherein CreditGuarantee Fund Trust Scheme for Micro andSmall Industries (CGTMSE) offers creditguarantee cover to Member LendingInstitutions (MLIs), up to 75% of amount ofdefault. This is a boon for micro units and start-ups, who can raise initial funding without

having to worry about collateral.

Union Budget 2015 has also offered a new sourceof trade financing to MSMEs by proposing settingup of Factoring - Trade Receivables Exchange.

Another path breaking initiative taken in thisregard by Prime Minister Mr. Narendra Modi bylaunching ambitious programs like Make inIndia, Micro Units Development and RefinanceAgency Bank (MUDRA) and Smart Cities. PM’svision can be achieved only if there is adequateflow of credit in MSME sector. Increased andeasy credit will help MSMEs expand, hire morepeople, and become larger contributor to overalleconomic growth.

Handing over of the school bus for KRIPA Special School under CSR Initiative of South Indian Bank to Rev. Fr. Paul Nedumchallil CMI (Director, KRIPASpecial School) by Mr. Reddy N. J. (Joint General Manager and Regional Head, RO Ernakulam), in the presence of Rev. Fr. Jacob Menachery CMI (Asst.Director, KRIPA Special School, Mr. Manu Jose (Senior Manager and Aluva Branch Head), students and staffs of KRIPA school.

Micro, Small and Medium Enterprises constitutethe backbone of an economy in maintaining anappreciable growth rate and in generatingemployment opportunities. This sector has beenregarded as engine of economic growth andsocial development in many developed anddeveloping countries. Contribution of MSMEsto the Indian economy are in terms ofemployment generation, containing regionaldisparities, fostering equitable economicgrowth and enhancing export . Despite someinfrastructural deficiencies and challenges likeflow of institutional credit and inadequatemarket linkages, this sector has registeredremarkable success with regard to increase innumber, quantum of investment, scale ofproduction and overall contribution to nationalGDP. Potential of the country has been quitephenomenal.

Indian economy during the recent years hasshown an appreciable growth performance bycontributing to creation of livelihoodopportunities to millions of people, inenhancing the export potential and inincreasing the overall economic growth of thecountry. Prompt and appropriate fiscal stimulus,effective monetary policy and huge capitalinflows were greatly instrumental in the bounceback situation of the economy. As a catalyst forsocio-economic transformation of the country,the MSME sector is extremely crucial inaddressing the national objectives of bridgingthe rural-urban divide, reducing poverty andgenerating employment to the teemingmillions.

Export-Import Bank of India, (2012) hascritically analysed the present situation ofMSMEs and support systems available in Indiaas well as in the global context. It has suggestedthat MSMEs in India should have access toalternative sources of capital like angel funds/risk capital etc. and that existing laws shouldeffectively address issues like insolvencies/bankruptcies; need to redefine the ceiling limitsto encourage MSMEs to move up the valuechain and need for cluster developmentapproach to increase the level ofcompetitiveness.

MSME in India:Opportunities, Issues & Challenges

Statistics reveal that the number of suchenterprises set-up, employment generated andthe investments made in the MSME sector inIndia has shown an increasing trend over theyears as evident from Table below

Flow of credit or availability of finance frombanking institutions is a major factorcontributing to the growth and success ofMSMEs. MSMEs sector plays a major role incontributing to India’s export performance. Thissector contributes 45-50% of the Indian exportsout of which direct export accounts for nearly35% and indirect 15% to the total exports.Needless to emphasize that while the organizedindustrial sector with large scale industriesrequires substantial amount of investment forgeneration of employment, the MSME sectorcreates larger employment opportunities withless or same investment.

Potentialities for Growth: OpportunitiesThe MSME sector offers huge opportunities forgrowth in industrial and service sector. It alsocreates employment by creating an ecosystemfor growth. The major opportunities are listedbelow:

Unleash industrial growthThe MSME sector in India occupies the secondposition next alone to agriculture in terms ofemployment generation. This sector accountsfor about 95% of the industrial units, 45% ofmanufacturing output, 40% of total exports ofthe country. MSMEs have greater opportunitiesto grow as ancillary industries to unleash higherindustrial growth.

Creating employment by growth in ancillaryindustriesThere are huge opportunities for the MSMEs togrow as ancillary industries to unleash greaterindustrial growth which create moreemployment. Development of the sector istherefore extremely important as it holds thekey to inclusive growth and plays a pivotal rolein holistic development of the country.

Creating an ecosystem for a manufacturing hubMSMEs in India consistently feed the domesticand the international value chain asmanufacturers, suppliers, distributors, retailers,contractors and service provider by accountingfor a substantial segment of our industrial units.This sector has been performing appreciablybetter than the overall rate of GDP and theoverall industrial output (measured by Index ofIndustrial Production-IIP). Availability ofadequate f inancial resources, a supportivepolicy framework to address the areas likeentrepreneurial skill development, a competentpool of human resources, application of latesttechnology and new innovations, adequateinternational market linkages and bilateraltrade agreements etc. would make the IndianMSME sector globally competitive to addressthe emerging challenges and help ensure theirsustainability.

Issues and ChallengesSome of the major challenges confronted bythese enterprises include; lack of adequatecredit and capital, poor and inadequateinfrastructural facilities, inadequate access andmarketing linkages, technological obsolescence

Year Total Working Employment Generated Market Value ofEnterprises (In Lakh) Fixed Assets(Rs. in Crores)

2006-07 361.76 805.23 805.232007-08 377.36 842.00 920,459.842008-09 393.70 880.84 977,144.722009-10 410.80 921.79 1,038,546.082010-11 428.73 965.15 1,105,934.092011-12 447.64 1,011.69 1,182,757.642012-13 447.54 1,061.40 1,268,763.672013-14 488.46 1,114.29 1,363,700.542014-15 510.57 1,171.32 1,471,992.94Source: Annual Report of MSME, Government of India, 2015-16.

Vivek ViswanManagerHO CPPI

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and inadequate application of new technology,lack of skilled human resources, dilatory andcumbersome regulatory practices for clearanceand poor adaptability to emerginginternational trends.

Lack of Adequate Capital and CreditOne of the greatest challenges which constrainthe growth of MSMEs in our country relates toinadequate capital and credit facilities. Easyand timely access to credit is a crucial factorto the development and growth of enterprises.The Report of the Working Group onRehabilitation of sick MSMEs by the ReserveBank of India has identified this situation as acrucial reason for industrial sickness of thissector. Complex collaterals insisted by thebanks, cumbersome sanction procedures anddelay in disbursement and high rate of intereston term loans further worsen the situation.

Poor and Inadequate Infrastructural Facilities:Deficiencies in the infrastructure and poorsupport facilities marked by inadequate accessto basic facilities like water, power supply, road/rail connectivity etc. adversely affect this sectorand contribute to enhance their operationalcost by rendering the MSMEs less competitivein the challenging market situations.

Inadequate Access and Marketing Linkages:Poor marketing linkages characterized byinadequate Government support andpatronage, lack of adequate marketinginfrastructure/ network facilities continue tobe a greater challenge for marketing and saleof MSME products. In a non-cluster situation,these enterprises get segregated and areunable to ensure reduction in procurement costfrom big companies and fail to streamline theoutput-supply chain.

Lack of Skilled Human Resources:Non-availability of skilled workforce and bettermanagerial/entrepreneurial expertise ataffordable cost near the location of enterprisesis another such big challenge for the MSMEsin our country. Lack of managerial competence,absence of proper training on resourceplanning and capital management etc. hindersthe growth of enterprises.

Lack of Access to New Technology:Most of the industries today require applicationof advanced technology in their operationswhereas in the Indian context, continuance oflow technology base results in low productivityby making these enterprises uncompetitive in

the ever-widening market contexts. Apart fromenhancing productivity and quality, newtechnology should be adopted for an overalltransformation and competitive edge.

Cumbersome Regulatory PracticesCumbersome regulatory clearances relating tosanction and disbursement of loans fromcommercial banks, collateral securities/guarantees, for construction permits, resolvinginsolvency and taxation etc. continue to be theconstraining factors for many MSMEs. Absenceof a common regulatory body and inadequateprovisions for start-ups affect the growth of suchenterprises. Non adherence to RBI guidelinesregarding revival/rehabilitation of enterprisesby the Banks is another such constraint thatneeds to be addressed.

SuggestionsAlthough the performance of the MSME sectorhas been commendable over the years in termsof employment generation, growth of exportsand in bringing about social transformation, alot more need to be done for their continuedgrowth and sustained development. The issuesand constraints that hinder their growth needto be identified and properly addressed. Somesuggestions to improve the performance ofMSMEs are indicated below;

Easy Access to Finance and Credit :Institutional finance/credit from banks andother financing institutions should be promptlyavailable without long and cumbersomeprocedures. Sanction of credit / loanapplications by public sector banks should bemade within a reasonable time frame ataffordable and reduced rate of interest.

Stepping up Infrastructural and SupportFacilities:Deficiencies in basic infrastructural facilities likewater, power supply, road/rail and telephoneconnectivity, etc. should be addressed onpriority basis. Use of solar or renewable energyas an alternative source should be encouragedin rural areas on subsidized basis. A cluster-centric or cluster development approach shouldbe adopted for a number of enterprises workingin closer proximity.

Creation of adequate Marketing Linkages :For enhancing sale of products, regular tradefairs/exhibitions etc. should be conducted forcreation of a larger platform for bettermarketing facilities. The Govt. of India policy

regarding 20% mandatory procurement ofMSME products by government Departments/State PSUs should be ensured.

Skill Development and Capacity BuildingInitiatives should be taken for skill /competency development of human resources.Infrastructural and professional support fromRural Self Employment Training Institutes(RSETI) and suitable training institutes may beobtained for conducting training ofentrepreneurs and workers engaged in differentactivities. Awareness / sensitizationprogrammes and TV/Radio talks should beconducted.

Access to Modern Tools and Technology:MSMEs today need to adopt and adhere toquality parameters of international standardsin the context of a globalized market.Technological obsolescence should be replacedby adoption of modern and latest tools andtechnology for increased productivity andquality product for competitive advantage.

Policy Intervention and Support Mechanisms:Industry-friendly policies should be initiated bythe government for promoting infrastructuralsupport facilities and for easy availability offinance by the scheduled banks. Governmentand Banks should take steps for revival of sickunits as per RBI Guidelines and CreditGuarantee Fund Trust for Micro and SmallEnterprises (CGAMSE) Scheme.

ConclusionMSMEs over the years have assumed greatersignif icance in our burgeoning nationaleconomy by contributing to employmentgeneration and rural industrialization. Thissector possesses enough potential andpossibilities to pushbutton acceleratedindustrial growth in our developing economyand well poised to support national programmelike ‘Make in India’. This sector has exhibitedenough resilience to sustain itself on thestrength of our traditional skills and expertiseand by infusion of new technologies, capital andinnovative marketing strategies. Appropriatestrategies should be evolved for creation of anenabling ecosystem where these enterprises areable to access the benef its meant forthemselves under a formal and friendlyecosystem and are further capable of meetingthe emerging challenges of a globallycompetitive order.

14

Government has introduced many schemes andinitiative to bring about financial inclusion andto make people more self reliant. Thrust hasbeen given to the growth of Micro SmallMedium Enterprises (MSME). MSME is an areawhich offers great scope for economic growth,employment generation and balanced regionaldevelopment. In our Bank, out of the totaladvances as on 30.06.2017, 24.32% comesunder MSME sector.

In order to promote maximum growth underMSME, the Government has set aside a CreditGuarantee Fund Trust (CGFT) which offersguarantee cover to Banks by the name CreditGuarantee Fund Trust for Micro and SmallEnterprises (CGTMSE) to cover MSME loans.

Key Features• CGTMSE cover is extended to all MSME

loans up to Rs 2.00 Cr, without collateralor third party guarantee.

• The objective of the cover is to ensure thatproject viability is given importance and

Credit Guarantee Fund Trustfor Micro and Small Enterprises

the advance is secured by primary security.• The scheme assures the lender that in case

the MSME unit fails to discharge itsliabilities, the Trust would make good theloss incurred by the lender at 85% of thecredit facility.

• Manufacturing and Service sectors areincluded and retail trade educationalinstitutions are excluded.

BeneficiariesTo Banks/Financial InstitutionsCGTMSE cover seeks to reassure the lender that,in the event of a MSE unit, which availedcollateral free credit facilities, fails to dischargeits liabilities to the lender, the Guarantee Trustwould make good the loss incurred by the lender

up to a maximum of 85 per cent of the creditfacility.

To BorrowersThe cover also provides an opportunity toBanks/Financial Institutions to providefinancial assistance to small scale enterpriseswith the backing of the guarantee. Hence manyMSMEs have the possibility to realize theirdreams.

Schemes CoveredNot restricted to any schemes and covers allfund / non-fund based facilities withoutcollateral and third party guarantee undermanufacturing and service sectors. As per latestmodif ication, CGTMSE has increased thecoverage of the eligible credit limit perborrower under the CGS from Rs. 100 Lakhs toRs. 200 Lakhs.

Since we are now shifting focus from wholesaleto retail credit, CGTMSE cover has come as agreat comfort for the lenders, as we can extendcredit to our retail customers with assurancefrom the Government. Therefore we must makemaximum utilisation of this guarantee coverand provide assistance to MSMEs whereverpossible.

Lakshmi KrishnakumarAsst. ManagerHO CPPI

SIBS Arts & Sports Club members to MysoreTeam Meppadi Branch in Ooty

Team RO Ernakulam at Bhoothathankettu.

HO Credit Department at Wayanad

Inauguration of new Offsite ATM at Lobelia HSS, Nayarambalam by Ms. RosemaryLawrence (Member, Zilla Panchayath) in the presence of Mr. S. Sharma (MLA), Mr. E. P.Shibu (President, Nayarambalam Grama Panchayath), Mr. Reddy N. J. (Joint GeneralManager and Head, RO Ernakulam), Ms. Annie Ouseph (Branch Manager, Vypin)

Inauguration of new Offsite ATM at Meenakshi Mission Hospital and Research Centre(MMHRC), Melur by Mr. R. Chadravel Rajan (Chief Financial Officer, MMHRC) in thepresence of Mr. S. Vijaykumar (Joint Commissioner, Commercial Taxes, Madurai ), Mr.N. I. Thomas (Asst. Gen. Manager & Head, Madurai),

Inaugural ceremony of Offsite ATM at Kannur International Airport Limitedattached to branch Mattannur under Kannur region by Sri. E P Jayarajan, MLA,Mattannur Constituency in the presence of Sri. Francis P J (AGM & RegionalHead, RO Kannur), Sri. K S Shibukumar (Chief Project Engineer, KIAL)

16

Inaugural ceremony of re-dedication of Chavakkad Town Branch by Mr. N. K.Akbar, (Chairman, Chavakkad Municipality) in the presence of Mr. Jojo Antony,(AGM & Regional Head, RO Palakkad), Mr. Joseph P. P., (CM, RO Palakkad), Mr.Nitheesh C V, (Manager, Chavakkad Town Branch)

Inauguration of Onsite ATM at the new premises of Nallanur Branch, by Mr. M.Ramesh (Chairman, Jayam Group of Institutions) in the presence of Mr. A. Sankar(DRO, Dharmapuri), Smt. Minu Moonjely (Dy. Gen. Manager and Head, RO Coimbatore),Sri. Ananthasubramanian (Asst. Gen.Manager, RO Coimbatore)

Inauguration of new Offsite ATM at PS Mission Hospital, Kundannur by Very Rev.Msgr. Mathew Elangimattom (Vicar General, Arch Diocese of Veropoly) in thepresence of Dr. Sr. Annie Sheela (Director, PS Mission Hospital), Mr. Reddy N. J.(Joint GM & Head, RO Ernakulam), Mr. Nandakumar A. (Branch Manager, Maradu)

Inaugurations

Accidents and survival is a part of everybody’slife. From childhood accidents like falling froma bicycle or falling while playing with friendsor the first crash in college days makes ourbody and mind fit to absorb the next big hit.This is a story of an accident and survival.

The hero of the story was an average studentborn and brought up in Thrissur, Kerala. Havinggrown up , one day while he was waiting for abus at the bus stand, suddenly a truck lost itscontrol and rode over him. We can say expectthe unexpected and when it comes to a tragicincident, it is always a disaster. The accidentwas literally a disaster and took the lives ofsome. Luckily he made a narrow escape withsevere injuries. We always say friends are thereal partners of life - but here, one of his friendpretending to be a close friend ran away fromthe situation without saving the life of hisdearest friend!!!

“Injury” - we normally classify as breaking a legor a hand. Here his head had a major injuryapart from minor injuries on his body. His skullwas broken, the brain and eyes were alsoinjured. Immediately he was taken to theGovernment Hospital along with the otherswho were injured in the incident. They stitchedhis head and he was told to go home. But theblood was oozing out and the duty Doctorimmediately said to his bystander “ this lookslike a severe injury and we are not having theexpertise to look to his case. Better take himto a good hospital”. Coimbatore is gifted withnumber of good hospitals and he was taken toK.G. Hospital. Immediately he underwent asurgery to bring him to consciousness. “THANKGOD”. The surgery was a great success. Thedoctors were then waiting for the main Neurosurgeon to come.

He regained his memory as the first surgerywas a success. He had to undergo anothersurgery for his nerves. Before going to theoperation theatre for the second surgery, thedoctor told him:” there is a possibility of survival- survival with paralysis or the surgery may bea failure. So, which do you prefer?” A very trickyquestion to a person lying on the operationtable in this situation.!!

He was able to answer the question in adifferent way. “Sir, I am seeing you as a Godand I want to live. I am confident in you. Please

Accident – Story of a Survivor

go ahead. The Doctor smiled at the patient andsaid, “ I was testing your mental strength at thiscritical time because, only if you are confidentof life, then only this critical surgery is going tobe a success.”. He was then taken to theoperation theatre. His parents, friends, relativeswere al praying for his survival outside theoperation theatre. The surgery took more timethan the usual time. Because of the accidentimpact, his nerves connecting the eyes to thebrain was damaged and the doctors were tryingto “stitch” the nerves!! Neuro surgery on brainwas carried out with expert doctors and luckilyeverything went well. He was brought to ICUfrom the theatre and his body was shiveringwith cold. Nurses and doctors put blankets toreduce the cold on his body and to bring himback to normal. After few hours his body startedfunctioning normally. His father and motherwere called inside the ICU to check whether hewas able to recognize them. The video of theentire surgery was shown to his father - a toughmoment to a father seeing the surgery of hisson, that too the head being opened.

Thanks to the medical science which has beenadvanced to a great extent that thesecomplicated procedure are solved now. He wasmoved to a room after a week from the ICU andthe interesting feature in that room was thatthere was no “Mirror”. If there had been a mirror,on seeing his own figure the patient would havehad a mental shock since his head was like a“Big Zip”. Slowly he came to his normal life. Hewas told to undergo another surgery after 3

months by the doctor. Continuous rest for 3months made him get strengthened for the nextsurgery. He was admitted at KG Hospital,Coimbatore again for the third surgery. Thistime the surgery was to put a “Metal Alloy” inthe place of the broken skull which will protectthe brain from further hits or damage. Againthe same Doctor did the operation with easeand the surgery was a success. Like the lastsurgery there were questions and answers anddue to the continuous pain, the patient withoutlosing hope became physically and mentallystrong. He went back home at Thrissur . After 3weeks regular monthly check ups was carriedon and now he was able to move back to normallife over a period of time. After this accident,he never grows hair and the “Gajini” stitch markon his head made him a different personwherever he went. He loves adventure, sportsand was able to do river rafting, bungee jumps(which the doctor has said not to do it again),para- gliding etc and he loves to travel a lot.

The survivor is a motivational speaker amongthe severely injured accident patients and someof the leading hospitals call him to counsel thepatients to gain confidence before the surgeryso that the survival rate will be higher. Friends,this is my story. I am Nikhil A.B., now placed asa Senior Manager at Chennai Adayar Branch.My gratitude goes to everyone who made mesurvive from the unexpected incident;especially my parents and sister who hadsuffered a lot to bring me back to life, thedynamic doctor who is very straight forwardand talented and my loving wife who hadaccepted me even after knowing this horribleincident.

This story gives us some inputs on how to facea difficult situation and how not to lose mentalstrength on ever demanding occasion. Alwaysbe confident of yourself and do whatever youcan for others.

World Heart Day celebration at Lourdes Hospital, Ernakulam inaugurated by renowned MalayalamFilm Actor Sri. Manoj K. Jayan in the presence of Sri. Reddy N. J. (Joint General Manager and Re-gional Head, RO Ernakulam), Rev. Fr. Sabu Nedunilath (Director, Lourdes Hospital)

Nikhil A.B.Senior ManagerBr. Adayar

17

“UTSAV-2017”, our Region’s Family Meet washeld on 5th March 2017, Sunday at Vaigai club,Madurai under the leadership of Mr. BenoyVarghese, Senior General Manager, HO-CreditDept. and Mr. N I Thomas, Assistant GeneralManager, Madurai Region. Family get-togethersare a great way for family members to catchup, strengthen the camaraderie and toexperience a much needed change from thedaily routine. There was an abundance ofyouthfulness in everyone who participated inthe family meet irrespective of age and theofficial designation.

The theme of ‘UTSAV-2017’ was “Unleash TheTalent In You!!!” and the 300 odd strongparticipants took the motto in its true spirit thattriggered active participation in sports andcultural events. In short ‘UTSAV-2017’ servedas a platform for the staff members and theirfamily members to showcase their talents.

The tireless efforts of convenor, Mrs. Katyayini,Chief Manager, RO Madurai and Joint convenors,Mrs. Susan Sarah Zachariah, Manager and Mr.Palpandian, Clerk is laudable .The splendidorganisational skills that made the family meeta grand success is praiseworthy. Organising anevent for the Staff under Madurai Region wasnot an easy task owing to the geographicalvastness of the region. But the meticulousplanning and eff icacious execution of the

programmes by the Organising Committeecollectively made ‘UTSAV-2017’ a memorableevent. “YES, WE CAN.......” is the motto that wehad chosen for ‘UTSAV-2017’ and the grandsuccess of the event did justice to the motto.

Regional Office and Branches had participatedin ‘UTSAV-2017’ under the flags of four clusters:

“Madurai Bull Riders”, led by Mr. PremkumarS, Chief Manager, RO Madurai“Classic Spinners “, led by Mr. Senthil KumarK T S, Chief Manager, Br. Aruppukottai“Delta Warriors”, led by Mr. Srivatsan V P,Manager, Br. Trichy Main and“Super Sailors”, led by Mr. Saji T, SeniorManager, Br : Tirunelveli

It is noteworthy that the creativity of the clusterheads with prominent logos and colourful T-shirts added flavour to the event. They exhibitedcommendable team work and theircontributions translated the hidden energylevels of one and all into the success of the meet.

‘UTSAV-2017’ kick started with the cricketmatches and the team Classic Spinners emergedas winners. Which was followed by badmintoncompetition and other events like musicalchairs, treasure hunt, Tug of War and Lemon andspoon race for women and kids. The activeparticipation in the sports events vindicated thatthe sweltering summer did not dampen the

“UTSAV-2017-A GALA TO CHERISH” spirit of the participants and the verve and theenthusiasm evinced by them in the sportsevents spilled over to the cultural events also.As the day progressed , the hidden youth in eachone transformed the venue into an electrifyingatmosphere.

“One need not be a participant to feel theexcitement”. The audience cheered theperformers fervently and on occasions joinedthem on and off on the stage too. The vibes ofcollege days were felt there. For a number ofparticipants, it was the pre-event sessions thatwere most memorable. They enjoyed nightpractice and dinner together and the sense oftogetherness and fun was a welcome changeafter tight work schedule. Above all, ‘UTSAV-2017’ catalysed to strengthen the bondingbetween the staff members regardless of thedifference in the rank and age.

‘UTSAV-2017’ lingers afresh in the minds of oneand all at SIB- Madurai region. It happened tobe a perfect example of what team work andcooperation can achieve in an organization. Thesupport from the staff members and their familywas tremendous which culminated into thesuccess of the Meet. SIB is privileged to havesuch wonderful, talented and supportive staff.

Glaxon K.J.Manager (Legal),Madurai RO

Having served South Indian Bank for 34 years, Iam now stepping down. I can assert with muchsatisfaction that I have worked to my best forthe betterment of this institution. The Godalmighty has blessed me in all my efforts and Iwould be thankful always.

Retiring with a satisfied mind is definitely alucky thing. No complaints or no grievances onwhatever happened to me during my career. Allthe works assigned to me have been acceptedwithout any hesitation and I consider that allthose challenges brought me rise in my career.Without a briefing of my service details, themessage, which I wish to share, will beincomplete. I am always happy to mention thegood things the bank conferred to me from thevery beginning of my career.

Once somebody asked me how you are gettingall favours from the bank, I replied even thoughI belong to a place far away from Thrissur, I havegot an influential person in Thrissur and hisname is “Guruvayoor Appan”. My career in SouthIndian Bank is summed up below.

Having got appointment in 1983, I was postedto my home district, a rare thing at that time.On to the next promotion I was posted toCoimbatore, which is the nearest city outsidethe state. I was allowed to work in the samebranch for 6 years, which helped me in theeducation of my children. On next promotion Iwas posted to Chennai which is about 500 kmsfrom Coimbatore. My daughter who tookMalayalam as second language, which has beentaught only in 3 or 4 schools in Tamilnadu, gotadmission in a school in Chennai. Again ablessing for me! Here I would mention thatneither have I given any request for a transfernor the authorities concerned aware of mypreferences. From Chennai, almost every 2 to 3years I have been transferred to different placeseither on promotion or on completing 3 yearsservice. Even then, the study of my children washardly affected. I also received timely promotionand retiring as AGM, I believe this is the positionmost fitting to my calibre and I don’t aspire foranything more.

I have no complaints or grievances but onlygratitude and loyalty to the organization. Therewere setbacks in my career, which includedhaving served memos, charge sheets and evenpunishments. I considered it as a way to make

Pages from the diary notes of a banker

me more cautious and prudent in future,believing that our sincerity will win always. Ialso remember situations, where by God’s help,I was saved from problems. In my whole serviceI have not given any transfer request, still Igot convenient postings and comfort in mycareer and life. I believe that if we worksincerely, rewards will come to us in one orother way. I was not an outstanding managerbut I tried to give maximum output to theorganization by reducing availment of leave.Till date I have not taken any sick leave andthe balance sick leave to my credit is 630 days.We used to hear complaints from staffmembers that his/ her house at native placeremained locked for years and partly damageddue to lack of maintenance or by not occupying.In my case, out of total 34 years I was out ofmy home state for 19 years and I am going tooccupy my house for the first time after theretirement and so far I have changed 18 rentalhouses in my service. I believe that God’sblessings were with me and majority of mytransfers were to a better branch/ office thanthe previous ones and those transfers had notcaused any inconveniences.

During my career I tried to induce the value ofwork and importance of sincerity to mysubordinates by describing my careerexperience. I am sure that all of them willfollow a better work culture and transparencyin their career.

I don’t want to invite the allegation of boasting,that is why I requested to publish this after myretirement.

We have got a strong, dedicated and sincerework force, which I believe will bring ourbeloved institution to glorious position. I havegot full confidence in our young generation;they are capable of leading our ‘next generationbank’. Now we have got staff mix from all areas,which will bring in innovations. We have gotgood presence in a number of states andpowerful positions in few areas/ locations,

which has to be utilised to our favour. Eventhough our share of contribution to the totalbusiness is comparatively low, our growth rateis much above the peer, which shows ourcompetency.

On gender proportion, 40% of total strength andabout 35% of officers are female. These officersare very efficient and capable of leading ourinstitution to better heights. But I have a feelingthat we are not giving them better opportunitiesor exposure instead of that in most cases wedeny them opportunity for their careerdevelopment in the name of favouring orprotecting them. If they are provided withchallenging situations, their confidence levelwill improve and this will benefit our institution.One concern that everybody agrees to is ourCASA position, which is not to the level ofindustry average or to the peer group level. OurCASA is still around 25% of total deposit, whichis much below the desired level. I believe thatdemographic analysis of our individual CASAaccounts may give some clue in this direction.We are not very successful in bringing the youngto our fold. We have got all technology productsbut this advantage is not really reaching theyounger generation who are presently havingsufficient income generation. Additionally wecould not get into the cash rich companies forwhich our branch level initiatives seem notsufficient.

Along with propagating our digital facilities, theservice in the branch counters is also to beimproved and speedy disposal of customers tobe ensured. For this all branches should beprovided with sufficient work force in differentcategories. Those who are ‘crying for’ always getfavours and the difficulties faced by others arenot being noticed. Throughout my career it hasbeen observed that some branches are alwaysgetting suff icient staff whereas a few aresuffering. I don’t know whether there is anygauge to access the actual requirement. Fromour experience we can formulate methodologyto access the staff requirement of a particularbranch. Weight may be given to different areaslike time deposit, demand deposit, term loans,working capital limits, NPAs, number ofvouchers, number of ATM, forex business etc.for analysing the staff requirement.

Branch level prof itability is also to beconsidered for accessing one’s performance. Atthe close of every financial year, the profit willspeak rather than the volume of business. Our

Prakash M.K.Asst. General ManagerRO Thrissur

20

transfer price mechanism is to be scientificallymodif ied and actual performance inprofitability should be measured. This will givea measure of real performance of the business.Once the profitability is measured for branchperformance, number of requests for reductionin rate of interest or charges will definitelydrop. I have come across situations wherebranch recommend rate of interest reduction,more than that requested by the borrower.

Since the efficiency of the branch is measuredin terms of figures, there is a tendency to retaincustomers by allowing reduced rate of interestand all other concessions for the only reasonof keeping the advance figure intact. Managersare not ready to accept rejection of loan eventhough the quality of an advance impairs. Thisshould be changed and managers should exitsuch accounts for the sake of our bank. Asuitable exit policy is to be formulated andmanagers are to be given target for deportingdoubtful accounts from our fold. A similar caseis that the branches achieving their targetnumbers with the help of giving enhancementsin the existing accounts. At the end of the yeara stock should be taken on how many newadvance customers whom each branch wasable to bring to our fold rather than just seeingthe achievement of target numbers. It is truethat achieving the targets in the presentchallenging environment is not a cake walk.In the endeavour to achieve the targetednumbers, another trend being found in somebranches is that the proposals once declinedare being taken up again by new branch headswithout any proper justifications. Respectiveregional offices have a great role to play toput a full stop to such unhealthy practices.

Hard work and dedication are the base onwhich growth starts. The location of a branchis also one of the factor determining thegrowth. However it can be observed that thebranches situated in the same area and withsame infrastructure showing business figurewith wide variations. Little more attention andpersuasion in these branches may lead to better

results. Take the examples of few centres outsideKerala like Delhi, Mumbai, Bangalore Chennai,where we have good presence, and also placeslike Ernakulam and Thrissur in Kerala. Expectingan advance of Rs 100.00 crore per branch fromthese centres is very reasonable. But except avery few, the advance f igure of all otherbranches is very low and even less than that ofa branch situated in rural area. These branchescould not grab the location benefit and thepotential available, which is a concern. Theabove given chart shows the data in 6 majorcentres and the last column give the averageadvance figure of branches categorized underadvance < Rs 100.00 crore. If these branchestake little more efforts, they can make theiradvance to Rs 100.00 crore. Vigorous persuasionand support from RO/ HO def initely showresults. If these branches make advance to anaverage figure of Rs 75.00 crore for the currentyear, this itself will contribute Rs 3000 crore toour advance number.

Similarly after identifying the scope of goodbusiness, we have opened a number of branchesespecially outside Kerala during 2012-13onwards. The advance figures of majority ofthese branches are not encouraging.

I also take this opportunity to share one moreexperience with you. Some of our retired staffhave got temporary job or assignments with ourexisting customers. After joining the new firm,their first attempt is to pressurize our branchand to get reversal of charges collected in theprevious years. They find this as an easy way toget his position safe and to take the confidenceof the new boss. These poor people seldomremain there for more than 1 year. Please thinktwice before doing such things.

Before concluding, I take this opportunity tothank those who supported, helped andrecognized me from the beginning of my careerand I specially thank those who supported mein my difficult times.

Name of No of No of branches No of branches Average advancebranches with advance with advance among category 2

Centre considered > Rs 100.00 cr < Rs 100.00 cr Rs. in Cr.Bangalore 14 5 9 51.79Chennai 17 7 10 39.78Delhi 23 4 19 20.01Ernakulam 20 6 14 38.99Mumbai 14 4 10 24.09Thrissur 18 6 12 32.00

Stand Up IndiaMSME is the back bone of Indian Economy andthe Government of India is leaving no stoneunturned to boost this sector. There were severalschemes introduced by the Govt. and one of theschemes that was evolved to bring in parity inthe economy is the ‘Stand Up India’. Thefollowing are the salient features of this scheme:

The fundamental concept of the Stand UpIndia scheme is to promote entrepreneurshipamong women and Schedule Caste(SC) /Schedule Tribe(ST) borrowers.This scheme is designed to facilitate bankloans to SC/ST and women borrowers.The loans are provided for setting up ‘NewGreen Field Enterprises’ in Manufacturing,Trading or Services sector (non-farm sector).Quantum of finance :Above Rs.10.00 lac upto Rs.100.00 lacs.Funding : Composite Loan by way of TermLoan and Working Capital - Fund based ornon fund based.Margin : 25% of the total project cost.Loan Tenor : 84 months excluding a holidayperiod of 18 months.There is no insistence on collateral security,if the borrower opts for guarantee coverunder CGSSI Scheme with National CreditGuarantee Trustee Company.

This scheme is promoted by all banks and thefocus is to provide the necessary support to theunder -served sector. This scheme is expectedto benefit approximately 2.5 lac borrowers,thereby bringing the MSME sector to limelight.

21

Ramya K.ManagerHO CPPI

22

Branch Name Alappuzha Br. code 0001Date of Opening 07-02-1944No. of ATM Onsite 1Specialty of the Location With its vast network of lakes, lagoons and fresh water lakes

and crisscrossing rivers Alappuzha is referred to as the “Veniceof the East”. Alappuzha is also famous for its boat races,houseboat holidays, beaches, marine products and coir industry.

Nearest Railway Station Alappuzha-3 kmNearest Airport Cochin International Airport, Nedumbassery-89 kmNearest Bus Station Alappuzha-2 kmLocation of ATM Near municipal Office, CCSB Road, Alappuzha

Branch Name Ammadam Br. code 0003Date of Opening 21-02-1971No. of ATM Onsite-1 & Off-site- 2 (Kodannur & Perumbillissery)Specialty of the Location Ammadam literally meaning ‘the place of mother’ is a village

in the Thrissur district of Kerala. About 8km away from Thrissur.St Antony’s church founded in 1803.

Nearest Railway Station Thrissur 12 kmNearest Airport Cochin International Airport, Nedumbassery -70 kmNearest Bus Station Sakthan Bus Stand -12 kmLocation of ATM Ammadam – Peringottukara Rd., Ammadam, Paralam

Branch Name Arkonam Br. code 0004Date of Opening 03-11-1966No. of ATM 01 (offsite)Specialty of the Location Famous for Railway Coach building Work. Kancheepuram is

just 35 km away from here, which is famous for Temples andSilk.

Nearest Railway Station Arakkonam Junction -1.5 kmNearest Airport Chennai International Airport -75kmsNearest Bus Station Arakkonam New Bus stand -1/2 kmLocation of ATM Gandhi Road,Arakkonam. (500 mtr from branch)

Branch Name Aluva Br. code 0002Date of Opening 10-07-1945No. of ATM Onsite:- 2 Offsite-3Specialty of the Location Aluva, home to the summer residence of the Travancore royal

family – the Alwaye Palace is also famous for the Sivarathrifestival celebrated annually at the sandbanks of Periyar. TheAdvaita Ashram founded in 1913 by Sree Narayana Guru

Nearest Railway Station Aluva only 100 mtrs from branchNearest Airport Cochin International Airport, Nedumbassery - 11.7 kmNearest Bus Station Aluva only 150 mtrs from branchLocation of ATM 1. Parur Kavala 2. Seemas Wedding Collections

3. Rajagiri Hospital,

Know your Branch & Know your BanK

Branch Name Aruppukottai Br. code 0005Date of Opening 23-11-1965No. of ATM One Offsite ATMSpecialty of the Location Aruppukottai has got many Textiles Industries, which is the

main business of this locality.Nearest Railway Station Aruppukottai -4 kmNearest Airport Madurai -45 kmNearest Bus Station Aruppukottai -1 kmLocation of ATM Thiruchulli Road

Know your Branch & Know your BanK

23

Branch Name Ayarkunnam Br. code 0006Date of Opening 02-07-1970No. of ATM 2Specialty of the Location Residential cum business Area, about 16Km from

Kottayam town.Nearest Railway Station Kottayam Railway Station -16 kmNearest Airport Nedumbassery Airport, Kochi -80 kmNearest Bus Station Ayarkunnam Bus Stand -10 mts & KSRTC Bus Station,

Kottayam -16 kmLocation of ATM Onsite-1 & Offsite-1 at Oravackal Jn

Branch Name Ayyanthole Br. code 0007Date of Opening 27-10-1958No. of ATM 1 OnsiteSpecialty of the Location Thrissur Collectorate.Nearest Railway Station Thrissur Railway Station -2.5 kmNearest Airport Kochi International Airport -55 kmNearest Bus Station Sakthan Stand 4 km, KSRTC -2.5 kmLocation of ATM 1 Onsite

Branch Name Bangalore City Br. code 0008Date of Opening 29-06-1959No. of ATM Onsite 01Specialty of the Location Garden City of India, IT Hub, Textile, Hardware, Famous Tourist

Spot: Cubbon Park, LalBagh, Ulsoor Lake, Vidhana SoudhaNearest Railway Station Bangalore Central Station -1.4 kmNearest Airport Kempeagowda International -34 kmNearest Bus Station Majestic Bus Station -850 mtsLocation of ATM Maharaja Complex K G Road

Branch Name Bharananganam Br. code 0010Date of Opening 23-03-1971No. of ATM 2Specialty of the Location Our Branch is just opposite to the famous St. Mary’s church &

pilgrim centre where mortal remains of St. Alphonsa is entomedNearest Railway Station Kottayam -32 kmNearest Airport Nedumbassery -80 kmNearest Bus Station Palai -6 kmLocation of ATM 1-Onsite

1-Offsite: At the Entrance of IHM Hospital, Bharananganam

Branch Name Bangalore Cantonment Br. code 0009Date of Opening 15-05-1965No. of ATM ONESpecialty of the Location Commercial Area with lot of Shopping centre, Hotels.Nearest Railway Station Cantonment Railway Station -4 kmNearest Airport Devanahalli Airport -51 kmNearest Bus Station Shivajinagar -1 kmLocation of ATM Onsite

Branch Name BHAVANI Br code 0011Date of Opening 19-12-1955No. of ATM 2Specialty of the Location Bhavani was known as carpet city from 1950s to early 2000s.

Bhavani was a main administrative centre under the Britishraj. Main spot of attraction is the Sangameswarar Temple,(Kooduthurai Kovil) which is 2000 years old.

Nearest Railway Station Erode -17 kmNearest Airport Coimbatore -105 kmNearest Bus Station Bhavani -400 MtrsLocation of ATM 1- Onsite - Murugan Transport Building, Mettur Main Road

1- Offsite – Komarapalayam

Branch Name CHALAKUDY MAIN Br. code 0012Date of Opening 06-04-1964No. of ATM On-site-1 Off-site-1Specialty of the Location Tourist Spot- Athirapilly / Vazhachal Water Falls are nearby.Nearest Railway Station Chalakudy -1.5 kms from BranchNearest Airport Nedubassery Air Port -20 kms from BranchNearest Bus Station Chalakudy -500 Meter from BranchLocation of ATM 1. Chalakudy Main Road 2. 50 Meter from Branch

Branch Nam CHANGANACHERRY Br. code 0013Date of Opening 04-03-1970No. of ATM Onsite1 & Off-site-1Specialty of the Location Changanassery is connected to high-range and Kuttanad.

Changanassery was the largest market in the princely stateTravancore

Nearest Railway Station Changanacherry Railway Station -900 mtsNearest Airport Cochin International Airport -110 kmNearest Bus Station KSRTC Bus Station Changanacherry -2 kmsLocation of ATM Onsite-Near To Branch

Offsite –Central Junction Changanacherry

Know your Branch & Know your BanK

Branch Name Chelakkara Br. code 0015Date of Opening 04-09-1964No. of ATM One(On Site)Specialty of the Location Anthimahakalan Kavu located within 2 Kms is famous for Kala

Kali and followed fire works. 15 Kms away from “Kuthampulli”,a village famous for handlooms. Vazhani dam 24 Kms .

Nearest Railway Station Vallathol Nagar -10 kmNearest Airport Nedubaserry -84 kmNearest Bus Station Chelakkara Bus Stand -100 mtrLocation of ATM Chelakkara Main Road

Branch Name Changaramkulam Main Br. code 0014Date of Opening 05-03-1971No. of ATM Onsite - 1Specialty of the Location Arecanut MarketNearest Railway Station Kuttipuram -16 kmNearest Airport Karipur -68 kmNearest Bus Station Changaramkulam -1 kmLocation of ATM Onsite

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Kerala Start-upMission

Kerala Start-up Mission (KSUM) is designed toprovide a springboard to budding entrepreneurswho wish to launch themselves into the worldof technology based business careers. KSUM isrestricted to high tech startups with technologyproducts and innovations with in a limited timeframe. The incubatees in KSUM is selected in sucha way that a company with an innovative productidea will be reviewed by a Technical Expertcommittee consisting of experts from almost allthe domains.

KSUM in association with Government of Kerala,provides incubatees with research assistance,prototype developing assistance etc in theirrespective fields. Government of Kerala is offeringa one-year fellowship to young graduatesinterested in working with technology startupsand student entrepreneurs. This is a flagshipprogramme towards promotion of innovation andentrepreneurship across the State.

Technology Innovation Zone (TIZ) is the next steptowards entrepreneurship development whichstarts from building a talent pipeline fromschools and colleges and ending with InitialPublic Offer for Startups. Dedicated areas will beprovided for angel investors and other interestedparties in the zone. Kerala Startup Mission hasbeen designated as the agency to setup andoperate the TIZ.

The Government also envisages communitieswho work for the welfare of the society inenhancing the knowledge level to partner withKerala Start Up Mission. The programme is calledStart-Up Community Partner Programme andaims at developing the start up community fromdifferent sectors of the society. The programmewill act as a catalyst to connect the whole systemfrom students, professionals and entrepreneursand to promote inclusive development in thestart-up eco system within the state. Technologybeing one of the fastest moving waves acrossthe world. An inclusive growth can only beaccomplished by developing start up communityacross the state.

CAIIB

JAIIB

Sreekanth P NChennamangalam Br

Mr. Aljo Anto KHO Credit Dep.t

Yerramilli VenkataAlmasguda Br.

Sreeja Nair VChittur Br.

Ranjith MPayyanur Br.

Deepak. AAngamaly

Akshay DeshpandeHubli

Aishwarya V. KulkarniDavanagere Br.

Anija Ann RoyTrivandrum Main Br.

Vivek Shree ChandranPerundurai Br.

Radhalakshmy V.B.Velur Cochin Br.

Nesil GeorgeOrumanayur Br.

Patel G. ManjibhaiNaroda Br.

K. Umakanth NaiduRO Hyderabad

Avijit SinghKolkata G C Avenue Br.

Jenish PaulManagerBr. Chendrapinni

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Athira AAyarkunnamBr.

Sreeja Nair V.Chittur

Sheeba S.Cuddalore

Harikrishnan M.N.Puthupariyaram

Stebin A.S.Shillong

Wedding Bells

Lakshmi Krishnakumar, PO,HO Credit Dept., & Vinod

Rithu Davis D/o C.J. Davis, SeniorManager, Triprayar Br. & Calvin

Charan Deep Singh Asst. Manager HOCRD & Sharanjit Kaur

Ranjith M R, Manager, HOCredit & Surya Reghu

Bansan Thomas George, S/o Mr. ThomasGeorge, CM, Nangiarkulangara Br. & JishaClara John HO Security Department

Sreejith Gopinath, Asst.Manager, Ponda-Goa Br. &Thushara A

Bablu Kumar, Br Kanpur& Nehapal

David S/o Mr. P.D.Vincent Manager SIBRetd and Mrs.Tessy Chacko Asst.ManagerKattoor Br. with Glynn

Vinod Krishnan K.S., Asst Manager, ROPalakkad & Vinduja M.V.

Ron, Aroor Br. & Kripa Jose

Jithin Jose S/o Mr. .JoseMaliekal, S M, HO Mktg.Dept. & Maria Anto

Jithin P Varghese, CFM Dept.& Christeena Thomas

Sara C Emmanuel, Br. Punkunnam –Thrissur & Vimal Denny

Neethu Jimmy, Assistant Manager, Br.Punkunnam – Thrissur & Sanju Thomas

Rinu Raphy, S/o Mr. Raphy K.A. (Retd. SIB Staff)& Mrs. Darly George, SIB STC & Aleena David

Rincewins, Asst.Manager, Br.Pallassana & ElsaElizabeth Joshua

Don Pulikkottil D, Asst.Manager,Br. Kechery & NeethuC. Jose, Br Velur

Robin Manjooran, AM Br.Mannarkkad & Vineetha Sebastian

Bonu Joseph, Manager, RO Bangalore &Arpitha Tom, Asst.Manager, P&M Dept.

Rohit Kumar Sinha, Manager,HO Credit Dept. & Ritu Shree

Vivek Viswan V, Manager,HO Credit Dept. & Rekha

CLICKZ !!!

Clickz!!!A Platform to showcase yourPhotographic skills ....Yours might be the next......Send in your entries to siblink@sib.co.in

Mysore Zoo - Bibin Varghese, Br. Pookottumpadam

Mangalam Dam, Palakkad- Rahul V, HO Ins. & Vig. Dept.

Nelliyampathy- Mani Jose, Staff Training College

Nong nooch tropical garden, Bangkok- Jose N.J., Br. Chembukkavu

Floating Market, Bangkok- Jose N.J., Br. Chembukkavu

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