Union budget a clear road map for all round growth: Indian Overseas Bank

Anchored in the three Kartavyas - accelerating growth, building capacity and ensuring inclusive participation, the budget reflects a vision that resonates strongly with the banking sector, Ajay Kumar Srivastava, the Managing Director and CEO of the Chennai-headquartered bank, said on Sunday.

Public sector Indian Overseas Bank on Sunday said the Union budget is a clear road map for an all round growth, balancing industrial scaling with job creation and laying a robust foundation for a 'Viksit Bharat'. ''Anchored in the three 'Kartavyas' - accelerating growth, building capacity and ensuring inclusive participation, the budget reflects a vision that resonates strongly with the banking sector,'' Ajay Kumar Srivastava, the Managing Director and CEO of the Chennai-headquartered bank, said on Sunday. ''With a Rs 10,000 crore SME Growth Fund to create 'Champion MSMEs' and mandatory use of TReDS (Trade Receivables Discounting System) for Central Public Sector Enterprises (CPSEs), the government is providing small businesses with the structural support to scale. This enhances our ability to extend targeted credit and support MSME growth across regions,'' Srivastava said in a statement. The Managing Director and CEO of city-based Indian Bank, Binod Kumar said, ''The combination of equity, formalisation and compliance enablement represents a significant shift in MSME financing away from balance sheet lending to a full-stack growth model.'' Lenders would have significantly reduced long-term credit risk and there would be increased governance through the Rs 10,000 crore MSME Growth Fund, he said. Indian Bank is well positioned to leverage the combined efforts of cluster-based lending, anchor-based supply chain financing and digital delivery of credit in order to support MSMEs as they transition from small business to a national leader, he said. Ramesh Babu, the MD and CEO of private sector Karur Vysya Bank, commenting about the budget, said ''The continued focus on fiscal consolidation, including a reduction in the debt-to-GDP ratio, is expected to give banks greater flexibility to expand priority sector lending, support economic stability and balanced urban-rural development.'' The budget highlights inclusive technology adoption for farmers, women along with dedicated programmes to improve farmer incomes and promote rural entrepreneurship thereby strengthening the agricultural ecosystem, he noted. ''We remain committed to facilitating credit flows and supporting enterprises across sectors, in line with our mission to drive inclusive growth and strengthen the financial ecosystem'' he added.

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