Giant Strides

The Finance Ministry is speeding ahead with plans to set up an SME Bank early next year, with the paper work now before the Company’s Registrar. The Finance Ministry is speeding ahead with plans to set up an SME Bank early next year, with the paper work now before the Company’s Registrar. Mooted by the government as a budget proposal to uplift small and medium sectors, the new bank has already got monetary authorities blessings.

The Rs. 5 bn seed capital will come from surplus cash sitting in Government Accounts. The exact capital structure is being worked out, but a possible scenario of where the Treasury puts in a Rs. 1 bn with the balance to be topped up through a debenture is being talked about.

The SME Bank’s articles and memorandum of association has being sent up to the Company’s Registrar for registration as a public limited liability company.

The UPFA government’s maiden budget set aside some Rs. 26 bn to support various SME projects.

“A recent Asian Development Bank (ADB) survey revealed that absence of a SME business friendly bank and prevalence of complicated loan application procedures is a significant factor inhib