No. PR- 174
December 24, 2020
There is a need to reduce Turnaround Time(TAT) for grant of loans, says Mr. Ajay Vyas, Executive Director, UCO Bank at in a virtual interaction with PHD Chamber
“There is a need to reduce TurnAround Time(TAT) for grant of loans” said Mr. Ajay Vyas, Executive Director, UCO Bank at a virtual Panel discussion on Redefining Corporate Financing in New Normal organized by PHD Chamber on 23rd December 2020. He added that the banks will focus on cashflow based lending in times to come and this has already been started by SBI. It is important to move on from Ratings criteria for grant of loans. Artificial Intelligence, Algorithms, Prediction Analysis are the future of lending norms for banks to follow.
Speaking at the Webinar Mr. Thekepat Keshav Kumar, DMD, Commercial Credit Group-II (North& South), State Bank of India mentioned that it is wrong to say that banks were lending to NBFCs and indirectly to the Real Estate Companies as very less NBFCs have stakes in the Real Estate sector.
It is important that MSMEs and SMEs be given funding to enable them grow. The banks have fully supported the Aatmanirbhar Bharat wherein around 2 lakh crores were disbursed to support the Start ups including Small & Medium Enterprises.
Earlier Mr. Sanjay Aggarwal, President- PHDCCI felt that banks should be allowed to issue alternate Bank Guarantee. He felt that BG will take away difficulties of business entities. Those who deserve and are in dire need of funds need to be granted loans. The checks and balances may however be put on more stringently. It is important to promote businesses, he said.
Also present at the webinar were Mr. Jyoti Prakash Gadia, Chair, BFSI Committee, Mr. Ramkumar, ZM(CGM), Punjab National Bank & Co- Chair, BFSI Committee, PHDCCI and Mr. Bijay Murmuria- Co Chair- BFSI Committee. They raised some important concerns such as whether corporates with a single bad credit could be allowed loans; if in case of Real Estate companies the analysis of companies for loans is done on project basis or company’s track record basis; what is ideal way of financing a project- debt or equity; among others.
PHD Chamber of Commerce and Industry