Industry & Economy
-
SSI
Money & Banking
-
Credit Market
`Banks must recognise credit rating of SSIs by independent agencies'
Our Bureau
Chennai
,
May 13
SMALL-scale industries can get themselves credit-rated by independent agencies not just to smoothen the process of getting funds but also to showcase their reputation and capability to prospective customers, according to Mr S. Venkatesan, Executive Director (Finance) and Secretary, Sundaram Finance.
Chairing a discussion between representatives from SSIs, credit rating agencies and National Small Industries Corporation Ltd (NSIC), the nodal agency for the credit rating scheme, he said that modern business outlook demands increasingly professional management.
Mr A. Kamalakannan, Senior Branch Manager, NSIC, said that NSIC was urging the authorities concerned to ensure that banks recognisecredit ratings by third-party agencies recognised by the corporation. It has empanelled reputed agencies recognised in the international and domestic market.
Some of the agencies include Dun & Bradstreet, ICRA, Onicra, Crisil and Fitch.
NSIC offers 75 per cent of the credit rating fee up to a maximum of Rs 40,000 as subsidy. SSI units will have to pay 25 per cent to the rating agency and the balance will be paid by NSIC to the agency upon certification.
Representatives from SSIs while welcoming the move expressed scepticism over the implementation. Banks and financial institutions had their own processes and were not accommodative of the needs of the SSIs.
Article
E-Mail
::
Comment
::
Syndication
::
Printer Friendly Page
|
