CONSTRAINTS OF PUBLIC SECTOR BANKS IN FINANCING MICRO AND SMALL ENTERPRISES

D.Vennila

Volume : VI, Issue : I, January - 2016

CONSTRAINTS OF PUBLIC SECTOR BANKS IN FINANCING MICRO AND SMALL ENTERPRISES

D. Vennila

Abstract :

There is a greater role to be played by Public Sector Commercial Banks for funding Micro and Small Enterprises sector in accordance with the objective of the Nationalisation of banks for ensuring the flow of adequate funding to the productive sectors of the economy in general and small scale industries in particular. So, in order to study the constraints in financing the Micro and Small Enterprises, samples were taken from urban and semiurban anches of Public Sector Commercial Banks located in Coimbatore South and Coimbatore North Taluks. The study revealed that lack of integrity of the borrowers, lack of infrastructural facilities with the borrowers and lack of management skills are the major constraints of the bankers to lend loans and advances to the micro and small enterprises.