Why Experience Still Matters: The Untapped Power of India's Former Banking Talent

Retired banking professionals have an opportunity to contribute to a sector that promises to be a key enabler in India's aspiration to become the third largest economy in the world by 2028. The Micro, Small and Medium Enterprise (MSME) sector in India has been a huge growth driver, contributing to around 30 percent of India's GDP, 45 percent of its manufacturing output and 48 percent of exports, and providing employment to around 11 crore people.

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The retired banking community in India has a lot to feel proud of - having contributed to a sector that has recorded high performance and profitability, helped advance the country's financial inclusion goals, surpassed global peers in digital transformation and is now on its way to becoming one of the top three domestic banking sectors in the world.

However, once retired, professionals from this dynamic industry do not have adequate avenues to utilize their core expertise. And the goldmine of financial wisdom at their disposal remains untapped.

Now, retired banking professionals have an opportunity to contribute to a sector that promises to be a key enabler in India's aspiration to become the third largest economy in the world by 2028. The Micro, Small and Medium Enterprise (MSME) sector in India has been a huge growth driver, contributing to around 30 percent of India's GDP, 45 percent of its manufacturing output and 48 percent of exports, and providing employment to around 11 crore people. However, the sector continues to face a large credit gap of Rs 20-25 lakh crore that threatens to stifle growth.

Former bankers have core expertise that MSMEs can tap to address challenges around fundraising. These professionals, many of whom have served the sector for more than 35 years, possess unmatched institutional knowledge, analytical insights, regulatory familiarity and diverse banking sectoral expertise that are more relevant today than ever. Such financial wisdom goes a long way in helping MSMEs navigate the complexities around accessing credit.

Bridging the MSME Credit Gap: What Needs to be Done

Nonstandard accounting practices: A strong accounting foundation, including standard bookkeeping practices and the maintenance of financial records, needs to be in place for informed decision-making and boosting lender confidence.