In this issue

The July 2020 issue of Banking Finance covers wide range of articles on current topics. The articles include Interest Subvention Scheme to Formalize MSMEs and Facilitate Growth
-N Mohammad Ali, Interest Rates in Banks and Its Role in Economy-Nilotpal Banerjee, Agriculture Value Chain Financing-Pravindra Kumar, Marketing Strategies for MSME Business by Banks-Janardan Gadi, CIBIL MSME Rank - An Additional due diligence Tool-Navnit Kumar, Let's Understand MSMEs under New Rule-Rohit Narain Singh

Besides articles it also covers features, statistics and latest news on Banking and Finance Industry.

BANKING NEWS

Indian banks boost holdings of corporate notes

9 mins

RESERVE BANK NEWS

Banks to raise Rs 1,50,000 crore in next 18 months

10+ mins

INDUSTRY NEWS

FM launches new facility for issue of PAN in just 10 minutes

10+ mins

INTEREST SUBVENTION SCHEME TO FORMALIZE MSMES AND FACILITATE GROWTH

Introduction: Micro, Small and Medium Enterprises (MSMEs) plays an important role in Indian economy, it accounts 45% of manufacturing output of country. In terms of employment generation, it accounts next to agriculture sector, contributing 8% to GDP. This sector is the backbone of India's economy and is considered the 'cradle' of 'Make in India' initiative.

5 mins

INTEREST RATES IN BANKS AND ITS ROLE IN ECONOMY

Abstract This artefact discuss briefly about how the different interest rates offered by banks to different customers such as a housing loan borrower or a pensioner or a small businessman. What are the factors that are driving force to define these rates? The phenomenon of coupon rate and yield to maturity in bond market is also inscribed briefly. I have also illustrated How these interest rates are being used as an instrument to control inflation, recession and deflation in the economy. At the end I have scripted about recent rate cuts by Reserve Bank of India to upturn the down sliding economy due to Covid-19 pandemic and its effectiveness.

10 mins

Agriculture Value Chain Financing

(A booster for priority sector lending)

4 mins

Marketing Strategies For MSME Business By Banks

Importance of MSME Sector The Micro, Small and Medium Enterprise sector is crucial to India's economy. Micro, Small and Medium Enterprises (MSMEs) are amongst the strongest drivers of economic development, innovation and employment. The MSME sector also contributes in a significant way to the growth of the Indian economy with a vast network of about 63.38 million enterprises. The sector contributes about 45% to manufacturing output, more than 40% of exports, contributing 29 % of the GDP while creating employment for about 111 million people and manufacture around 8,000 quality products for the Indian as well as International markets, which in terms of volume stands next to agricultural sector.

10+ mins

CIBIL MSME RANK - AN ADDITIONAL DUE DILIGENCE TOOL

CIBIL MSME Rank is a tool to Access the Credit Risk ranking of Micro, Small and Medium Enterprises to make informed lending decisions, CMR is a credit risk for MSMEs that predicts the probability of an MSME becoming NPA in the next 12 months. It helps us to understand the credit behaviour of MSME as well as the probability of default based on the rank. It is applicable to MSMEs with aggregate commercial borrowing between Rs 10 lakhs to Rs 10 Crores.CMR provides a rank to the MSME based on its credit history data on a scale of 1 to 10.CMR 1 being the best possible rank for the least risky MSMEs and CMR 10 being the riskiest rank for MSMEs.The lower the CMR, the lower the Risk of NPA associated with the MSME.

3 mins

Let's Understand MSMEs Under New Rule

Till 25th May 2020, the classification of MSMEs was done based on investment in plant & machinery/equipment in accordance with the provision of Section 7 of MSMED Act, 2006, but on 26th of May 2020 while delivering the part of Atma Nirbhar Bharat Package, our Finance Minister Smt. Nirmala Sitharaman brought up a change in the definition of MSMEs by announcing the amendments in the section 7 of MSMED Act, 2006.

2 mins

RBI CIRCULAR

Extension of timeline for finalization of audited accounts

6 mins

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BANKING FINANCE Magazine Description:

BANKING FINANCE Magazine is a monthly magazine published by Sashi Publications Pvt Ltd. in Lucknow, India. It is one of the leading banking and finance magazines in the country. The magazine is known for its in-depth coverage of the Indian banking and finance industry, as well as its insights from leading experts in the field. It covers a wide range of topics related to banking and finance, including:

* Banking trends and developments: BANKING FINANCE Magazine covers the latest trends and developments in the Indian banking industry, such as new digital banking initiatives, regulatory changes, and mergers and acquisitions.
* Financial markets: BANKING FINANCE Magazine also covers financial markets, including the stock market, bond market, and currency market. The magazine provides analysis of the latest market trends and investment opportunities.
* Corporate finance: BANKING FINANCE Magazine also covers corporate finance, including articles on capital markets, mergers and acquisitions, and corporate restructuring.
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* Risk management: BANKING FINANCE Magazine also covers risk management, including articles on credit risk, market risk, and operational risk.

BANKING FINANCE Magazine is a valuable resource for anyone who is interested in the Indian banking and finance industry. It is a must-read for anyone who is looking to stay informed about the latest trends and developments in the industry, or who is looking for insights from leading experts in the field.