Panel discussion on Stressed Assets

A panel discussion on ‘Stressed Assets’ was conducted under the banner of Business Standard Smart Business in association with Vidarbha industries Association (VIA) in Nagpur. The panel discussion delibrated on the subject of stressed assets in the small and medium enterprises, President of Vidarbha Industries Association, Atul Pande said, "There should be a difference in the treatment of stressed assets and wilful defaulters. The suggestions for the same have been given to the Maharashtra government."

However, Sudhakar Atre, Freelance Faculty on Banking is of the view that SMEs are competent to take care of themselves and banks should take suo moto decisions for restructuring loans and any order placed by SMEs should be backed by Letter of Credit and there should be reduced cost of borrowing for SMEs.

Rahul Dixit, Member, CII Maharashtra said that the banks were lenient as far as funding to big corporates is concerned. Meanwhile he added that some proposed power projects could not take off due to lack of coal.

"There are Rs. 6 lakh crore worth of NPAs in the system of which majority from the big corporates working capital funding for SMEs dependent on corporates. Banking reforms should be next on the agenda of the government." He even advised SMEs to start becoming assertive. "They need to create value, focus on innovation, demand value by creating value. Brand building is very important."

Sitaraman Iyer, Sr. Partner, Khatri & Iyer Chartered Accountants said that there was no one ready to fund the startups in the region.

Somdev Singh, Chief Commercial Officer, Essel Utilities said, "SMEs require different kind of support innovation is very important."