An evaluation of how banks help small and medium-sized businesses in Assam

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Commercial banks in Assam have a higher number of branch network, but private banks have surpassed public sector banks and Regional Rural Banks (RRBs) by a huge margin in financing MSMEs. Average per branch achievement in disbursing credit to MSME is �2 lakhs for public sector banks, �254 lakh for private sector banks and �1 lakhs for RRBs for the year 2017-18. Public sector, private sector and RRBs have mostly failed in achieving the target of 7.5% of ANBC towards micro enterprises, but the contribution of private sector banks is comparatively higher. Constraints experienced by MSMEs in acquiring finance from banks include inadequate collateral security requirements, insufficient promotional drives, negative overall attitude towards MSMEs, and unreasonably high time gap between submission and sanction.