2018

May 11 Mumbai

MSME lending in the GST era: Time to retune strategies

Training dates - May 11&12, 2018

Training locaton - Mumbai

Training fee - ₹30,000 + applicable taxes

 

Summary

 

Background

 

The Indian Economy is at a cross road. The dual Impact of demonetization and implementation of GST has dealt a body blow to the existing structures in which the MSMEs functioned. With added compliance requirement and a huge heave at digitization the MSME sector is floundering in its efforts to work out different business models and compliance structure if they are survive and scale up in the future. Organization who cannot are likely to die off whilst the stronger ones with better market and technology linkages are likely to survive and grow.

 

The transition and the uncertainties pose a huge challenge to banks and non-banks who are aggressive lenders to the sector given the liquidity glut in the system and the crying need to build remunerative assets.

 

Difficult and different times need different strategies and products to be delivered to the MSME sector to take care of varying needs and business models. Thus, lending strategies, products and policies need to change in tune with heightened risks given the rapidly changing environmental dynamics.

 

Pure book building approaches work in a growing and reasonably certain local and global economy but uncertain economic times with varying levels of commodity price and supply uncertainties need adoption of different strategies, technologies and more importantly products and policies. Any one of the factors cannot serve as a panacea.  

 

Whilst financial reforms are needed to put in place the necessary framework to spur economic growth there is a crying need for review of the entire lending process by the banking and non-banking  system to orient the same for spurring the growth of Micro and small enterprises who are prime drivers of the economy. Need a strategic from priority sector based lending approach to business imperative and sustainability driven approach, from Credit dispensation to monitoring and collections.

 

The training program will primarily focus on Micro and Small Enterprise Lending.

 

Programme Objectives

 

The two-day workshop tries to address the above issues by focusing on key themes.

 

  • Understanding MSME life cycle stages and their funding requirement
  • Understanding the impact of GST on different sectors of the economy
  • Overview of the macro and micro economic indicators and their significance thereof
  • Understanding local conditions in which the Micro and Small Enterprises operate
  • Role of emerging technologies in evolution of modern day SMEs
  • Credit risk assessment of MSME – qualitative and quantitative aspects for existing customers and new origination
  • Understanding the business models and varying financial performance across different geographies
  • Structuring term & tenure of lending and product positioning thereof and future sustainability
  • Cash flow based lending and Monitoring techniques

This programme will benefit

 

  • Credit Officers and Relationship Managers at Banks and NBFCs handling MSME Customers.