The presented research study maks an critical analysis on the assistance of Public Sector banks to MSMEs and its effect on their performance. The research concludes that efficient management and enhancement of MSMEs will boost the employment and enhance the country’s GDP.
International Journal of Management (IJM) Volume 11, Issue 2, February 2020, pp 1–13, Article ID: IJM_11_02_001 Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=11&IType=2 Journal Impact Factor (2020): 10.1471 (Calculated by GISI) www.jifactor.com ISSN Print: 0976-6502 and ISSN Online: 0976-6510 © IAEME Publication Scopus Indexed IMPACT OF PUBLIC SECTOR BANKS ASSISTANCE TO MSME: A CASE STUDY WITH REFERENCE TO MSMEs AND THEIR PERFORMANCE Krishnaswamy Ramaswamy Research Scholar, RTM Nagpur University, Nagpur, India Rajesh Vaidya Assistant Professor, Department of Management Technology, Shree Ramdeobaba College of Engineering and Management, RamdeoTekdi, Katol Road, Nagpur, India Mangipudi Mruthyanjaya Rao and KDV Prasad RTM Nagpur University, Amaravati Road, Nagpur, Maharashtra, India ABSTRACT The Gross Domestic Product of a country indicates the prosperity and wealth of a country In the recent past India has become one of the fastest growing countries and completing with the most advanced and developed countries in several areas The Micro, Small and Medium Enterprises are small enterprises carry out the manufacture and allied activities will also contribute significantly to GDP, including one-third of India’s manufacturing output In India, 12 crores were employed through MSMEs and contribute to 45% of overall exports Most the developed countries contribution to GDP is more than 50%, and Centre for Economics and Business Research, 2018 reported that Indian would overtake both France and UK GDP by 2032 To achieve the countries ambition of Trillion economy, there is an urgent need to strengthen the MSME in India Therefore, the presented research study maks an critical analysis on the assistance of Public Sector banks to MSMEs and its effect on their performance The research concludes that efficient management and enhancement of MSMEs will boost the employment and enhance the country’s GDP Keywords: Growth, MSME, Public Sector Banks, Performance, Impact Cite this Article: Krishnaswamy Ramaswamy, Rajesh Vaidya, Mangipudi Mruthyanjaya Rao and KDV Prasad, Impact of Public Sector Banks Assistance to MSME: A Case Study with Reference to MSMEs and their Performance, International Journal of Management (IJM), 11 (2), 2020, pp 1–13 http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=2 http://www.iaeme.com/IJM/index.asp editor@iaeme.com Impact of Public Sector Banks Assistance to MSME: A Case Study with Reference to MSMEs and their Performance INTRODUCTION A country's productivity and rating is determined by its G.D.P (i.e.) Gross Domestic Products, which consists of the value of the goods and services it produces throughout the year Every nation aims to raise GDP in order to improve the country and its people in order to live with more stability, peace and wealth Our nation has also become one of the fastest growing countries on a par with advanced and developing countries Our nation is basically agriculture based and our production of goods and services are par excellence with advanced countries enabling more export earnings The Govt of India, various State Governments, support for achieving higher GDP thro‟ various schemes, notifications, concessions to enable big industries and also small units to increase the output of goods and services The PSU Banks under the guidance of RBI play a vital role in achieving above The GDP of India during 2017-2018 is around 7% and expected to be 7.4% to 7.7% during 2018-2019 The GDP of India consists of Contribution of 57% from production of goods, 26% from services and 17% from Agriculture sector The GDP of India has doubled in a decade (Economic Survey 2017-18) While big industrial houses produce in a big way, the MSME viz Micro, Small and Medium Enterprises too contribute for the GDP The Indian MSME Sector is the major contributor to the national economy providing it resilience to ward off global economic stress and adversities with around 36.2 million units of MSME across India The MSME contribution is 6.11% of manufacturing GDP and 24.63% of GDP of service sector as well as 33.4% of India‟s manufacturing output (about 1/3) and providing employment to 12 crore persons Further it is contributing forty-five (45%) percent of overall exports from the country The Centre for Economics and Business Research reported in July, 2018 mentioned that India would overtake both Britain and France this year in terms of GDP and has a chance to become the third highest by 2032 The MSMEs play an important role in providing large scale employment opportunities with comparatively lower capital cost when compared to big business houses The MSMEs help enhancing the industrialization and employment in backward areas The Government has also initiated the Pradhan Mantri Mudra Yojana for development and refinancing activities relating to micro industrial units (Economic Survey, 2017-18) 1.1 Brief on MSMEs Even though we got Independence in 1947, the Governments were not very serious to support the Small Scale Industries due to insignificant value individuality, lack of collectiveness and spread throughout India and hence were neglected both by Central Government and various State Governments Earlier it was not getting proper care as it was called “Small Scale Industries” and virtually got ignored After five decades viz on 18.01.2006, the Govt of India enacted in Parliament MSMED Act, 2006, to enable MSMEs Sector for vibrant growth and installed a separate Ministry of Micro, Small & Medium Enterprises, with Independent Minister incharge was created and presently Hon‟ble Minister, Shri Giriraj Singh, Minister of State independent charge for MSME under able and dynamic leadership of our respected Prime Minister Sri Narendra Modiji and are taking all positive steps for growth of MSME Sector (MSME, 2019) The significance and contribution of the Sector by successive Governments results in providing the Micro, Small and Medium Enterprises Development Act, 2006 for facilitating the promotion, development and enhancing the competitiveness of MSME and for matters connected there with or incidental thereto (Senapathy, 2014) http://www.iaeme.com/IJM/index.asp editor@iaeme.com Krishnaswamy Ramaswamy, Rajesh Vaidya, Mangipudi Mruthyanjaya Rao and KDV Prasad 1.2 Major advantages of MSMEs Micro, Small and Medium Enterprises require less capital but generates more employment, more prosperity for urban and rural development If well maintained would yield unimaginable quantum of prosperity and GDP for the country Employment generation IT Initiatives New Initiatives Accountability to Credit Skill Development & Training Performance of attached organization Thro‟ MSME Ministry, Development Industries in India so far 6.42.272 people were trained and 91634 got placements Under assistance to training institutions 207235 were trained of which 43761 got wage employment and 21783 self-employed Table Classification of MSME as per MSME Act 2006 on the basis of Investment in Plant and Machinery and Equipment Classification Micro Enterprises Small Enterprises Manufacturing sector Upto Rs 25.00 Lakhs Over Rs 25.00 Lakhs Less than Rs.5.00 Crores Medium Enterprises Over Rs 5.00 Crores Less than Rs 10.00 Crores Over and above limits are not covered by MSMED Act 2006 Source: MSME 2019 Service sector Upto Rs 10.00 Lakhs Over Rs 10.00 Lakhs Less than Rs.2.00 Crores Over Rs 2.00 Croress Less than Rs.5.00 Crores 1.3 MSME and PSU Banks There are 21 PSU banks functioning in India during 2018 are providing assistance to MSMEs The specific reasons for choosing PSU banks assistance for MSMEs growth are: Government holds 51% shares and works on the objective of not-for profit motto Social Justice by extending credit advances, guidance for Micro, Small and Medium Enterprises who need support PSU Banks to MSMEs for their growth and how far it has helped one considered relevant for the analysis of the study http://www.iaeme.com/IJM/index.asp editor@iaeme.com Impact of Public Sector Banks Assistance to MSME: A Case Study with Reference to MSMEs and their Performance 1.4 Government of India-MSME Initiatives With the above brief background the research was conducted and the results were presented here under AIM OF THE STUDY The purpose of study is to understand how far “the Assistance provide by public sector banks to MSME and its impact on their performances (with special reference to Hyderabad City) How it can attract the operations of MSMEs, whether any other factors are also responsible” 2.1 Objectives of the Study To understand the various assistance provided by PSU Banks to MSMEs To study whether it has helped to improve the performance of MSMEs To study whether any other factor / factors are also responsible for their growth To study other factors like market conditions, product life, technology changes, cheaper substitutes, consumer patter, Govt policies, Banks comfortable positions, etc or not contribute for growth and success of MSMEs http://www.iaeme.com/IJM/index.asp editor@iaeme.com Krishnaswamy Ramaswamy, Rajesh Vaidya, Mangipudi Mruthyanjaya Rao and KDV Prasad 2.2 Scope and Limitations of the Study Scope Temporal Scope: For the purpose of the Study the collection of data shall be from the period from 2013-2014 to 2017-2018 Functional Scope: To study the assistance provided by PSU Banks to MSME and its impact on their performance Geographical Scope: The study is taken up with special reference to Hyderabad City only Limitations of the study Inf & Data collected are believed to be reliable in good faith, but may not be verifiable independently pinions expressed by Entrepreneurs, Bankers, MSMEs, Quorum, may have been biased or may be from their angle Study is confined to Hyderabad City, issues may vary in other places Information collected being sensitive, with vigorous persuasion and visits I could collect data for analysis as planned RESEARCH DESIGN A positivist research design was applied where the research is based on survey, data collection, data analysis, statistical analysis, hypotheses and concluding the study with evidence based reports 3.1 Sampling MSMEs were chosen using random sampling technique to conduct study and Stratified random techniques are used 3.2 Sample Size The sample size of 46(NAAC), 44(NBA), and 62 (NYAKS) cases each in Micro, Small and Medium Enterprises were planned and overall 152 nos actually collected 3.3 Data Collection Primary Data–Thro‟ structured questionnaires, observations, interviews and discussions Secondary Data – Annual Reports of GOI, MSME, Govt of TS websites, banks‟ annual reports, text books, press reports 3.4 Reliability Statistics The C-alpha was measured for all the three sets of the data and the results were presented in Table Table Cronbach’s Alpha 0.926 No of Items 46 0.715 44 0.714 62 http://www.iaeme.com/IJM/index.asp Interference Since the value is > or 60%, the data is reliable as it is 92% Since the value is > or 60%, the data is reliable as it is 72% Since the value is > or 60%, the data is reliable as it is 71% editor@iaeme.com Impact of Public Sector Banks Assistance to MSME: A Case Study with Reference to MSMEs and their Performance 3.5 Hypotheses Hypotheses that have been formulated will be tested to describe the relationship between the variables are: Ho : To test if there is relation or association or correlation between financial assistance by PSU Banks to MSMEs and its growth / success H1 : To test there is no association or correlation between financial assistance by PSU Banks to MSMEs and its growth / success Ho : To test other factors like market conditions, product life, technology changes, cheaper substitute consumer pattern, Govt policies etc also contribute for growth and success of MSMEs H1 : To test other factors like market conditions, product life, technology changes, cheaper substitutes, consumer pattern, Govt policies etc not contribute for growth and success of MSMEs For the purpose of analysis he hypothesis are further divided into shypothesis and analysis is done based on sub-hypothesis and conclusions were drawn 3.6 Data Analysis Chi Square Test Analysis : (Test for Independence) Chi Square Test The Chi Square Statistic is commonly used for testing relationships between categorical variables The null hypothesis of the Chi Square Test is that no relationship exists on the categorical variables in the population, they are independent Usage of Chi Square Test : Significance level often researchers choose significance levels equal to 0.05 level used Test Method The formula used is X²c = € (fo – fe)² Fe Fo = Observed Frequency Fe = Expected Frequency If no relationship existed between variables As depicted in this formula, the Chi Square Statistic is based on the difference between what is actually observed in the data and what would be expected if there was truly no relationship between the variables „P‟ Value should be less than 05 (which is alpha level) with 95% confidence level If the „P‟ value is less than 05, we conclude the variables are not independent each other and there is statistical relationship between categorical variables If the Chi Square we calculated is bigger than the critical value in the table, then the data did not fit the model, which means we to reject the NULL hypothesis A very small Chi Square Test statistic means that our observed data fits our expected data extremely well A large Chi Square test statistic means that data does not fit very well The Chi Square test thus is the test that involves the use of parameters to test the statistical significance of the observations Chi Square Test is one of the important non-pa.rametric tests that is used to compare more than to variables for a randomly selected data / population (Kothari and Gard) http://www.iaeme.com/IJM/index.asp editor@iaeme.com Krishnaswamy Ramaswamy, Rajesh Vaidya, Mangipudi Mruthyanjaya Rao and KDV Prasad The variable under study is categorical the expected value of the number of sample observations in each level if the variable is at least ANALYSIS OF CASE STUDIES 4.1 Case Study - I (46 Cases) Most of the firms, enterprises got into problems due to reasons like power shortage, recession in industry, high taxation, scarcity, shortage of import material Monsoon failures and very strict and harsh attitude of banks in release of loans / advances or on revival of sick units and had become NPA Most of cases are pending with SLIIC, Telangana State Sub-Committee, Director of Industries and some with banks It is very difficult to expect positive outcome at this stage when banks themselves are facing severe strains due to heavy NPA increase, RBI norms, fear psychosis (RBI, 2017-2018) 4.2 Case Study – II (44 Cases) Most are medium and small scale enterprises able to utilize the bank loans, efficiently manage funds, other marketing issues, recession etc and keep themselves safe This is due to the fact that these firms / companies have other sources / income with which they sustain during difficult times Adopting conservative measures, managing tax matters, going in for outsourcing, trying for substituted materials, cheaper manufacturing ways etc This is possible by medium / small enterprises (Katyal and Xavier, 2015; Behera et al 2017) 4.3 Case Study – III - (62 Cases) Most of the cases of entrepreneurs / firms, it is seen either they avoid taking fresh loans or reduce their burden on finance cost by going for minimum loans / advances Many are awaiting for better times for reduction of interest rates, easy banking norms, reduction in taxes (GST/IT further) as incentives and also the global and general recession to vanish Their dependence on their activity for survival during Economic-Tsunami these sectors cannot face They drive cautiously Hence, slow growth, more cost, less profit The stiff competition and cheaper availability of Chinese goods are additional reasons /setback for them It is true survival of the fittest is the rule and they must try all means to survive, so that they can sustain and grow during good times (Babu et al 2015; Setyawati et al 2014) Interference on analysis of Case Study / interviews of entrepreneurs, firms, partnership firms etc the following are briefed (Reasons, Remedies and suggestions) A Many Micro Entrepreneurs, Firms, Partnership are feeling the high pinch of finance cost (interest) B Insistence of Collateral Security for loans is another stumbling block for new starters C The procedures, systems from start of application of loan till disbursement is a lengthy, time consuming cumbersome procedure discouraging persons to avail loans D Most of the entrepreneurs / firms try to maximum business without further loan / with their funds so that additional cost towards interest is avoided as it eats to the profit earned E The general recession due to global recession all are waiting for good time for expansion of business F The stiff / cut throat competition is also responsible for enterprises to think twice before taking loan G Due to strict norms of banks, declaring NPA in case of failure of interest by 90 days result in very unpleasant consequences, due to which there is fear for fresh loans http://www.iaeme.com/IJM/index.asp editor@iaeme.com Impact of Public Sector Banks Assistance to MSME: A Case Study with Reference to MSMEs and their Performance H Positive attitude like some more publicity on various schemes, positive approach by bankers, MSME Depot, Govt and increase in GST limit to Rs.2 Cr p.a making license, system in line, would encourage new comers to come to field and play well I Taxation System of GST, IT must be made more simple easy to understand and proactive for smaller people, businessmen appreciating their pains are some of the ways to develop more MSMEs to enter the market grow and flourish 4.4 Hypotheses Testing Ho: There is No Correlation between financial assistance by banks to MSMEs and its success H1: There is correlation between financial assistance by banks to MSMEs and its success As per Chi Square, the calculated significant value is less than 0.05; we reject the null hypothesis and conclude there is relation between financial assistance to MSMEs and its success Hence it can be concluded that more financial assistance enables MSMEs growth and its success Ho: Other factors like market recession, product life, technology changes, cheaper availability of products, consumer patterns, Govt policies etc not contribute for growth and success of MSMEs H1: Other factors like market recession, product life, technology changes, cheaper availability of products, (Substitution), consumer pattern, Govt policies etc contribute for growth and success of MSMEs As per Chi Square, the corresponding significant value is less than 0.05, we reject the Null hypothesis and accept alternative hypothesis Hence, it can be concluded that other factors are also responsible and contribute for growth or recession of MSMEs and its success Ho: Govt Policies does not matter for growth of MSMEs and its success H1: Govt Policies matter for growth of MSMEs and its success As the calculated significant value is 0.000, which is less than 0.05, we reject the NULL hypothesis and accept alternative hypothesis and conclude that positive Govt policies are helpful to MSMEs and will enable growth of MSMEs Ho: Govt.‟s levy of import duty and MSMEs growth there is no relation H1: Govt.‟t levy of import duty and MSMEs growth there is relation As the calculated significant value is 0.000 which is less than 0.05, we can reject NULL hypothesis and accept alternative hypothesis and conclude Govt.‟s heavy import duty will help MSMEs to sell locally goods due to competitiveness Ho: Govt.‟s supporting schemes on preference of purchase by PSUs for MSME is not related to success and growth of MSMEs H1: Govt.‟s supporting Schemes on preference on purchase by PSUs from MSMEs is related to success of growth of MSMEs As the calculated significant value is 0.000 which is less than 0.05 we reject NULL hypothesis and accept alternative hypothesis and conclude Govt.‟s supporting schemes on preference of MSMEs products by PSUs will enable more sales and growth of MSMEs Ho: Global recession does not affect growth of local MSMEs H1: Global recession does affect growth of local MSMEs As the calculated significant value is 0.000 which is less than 0.05, we reject NULL hypothesis and accept alternative hypothesis and conclude Global Recession affects growth of local MSMEs on exports are affected and demand will be less http://www.iaeme.com/IJM/index.asp editor@iaeme.com Krishnaswamy Ramaswamy, Rajesh Vaidya, Mangipudi Mruthyanjaya Rao and KDV Prasad Ho: Cheaper alternative substitutes availability does not affect growth of MSMEs H1: Cheaper alternative substitutes availability affect growth of MSMEs As the significant value is 0.000 which is less than0.05 we reject NULL hypothesis and accept alternative hypothesis and conclude, availability of cheaper substitutes like Chinese goods does affect the sale and growth of local MSMEs Ho: Heavy Taxes, levies for MSMEs products on par with big industrial houses does not affect growth of MSMEs H1: Heavy taxation, levies on MSMEs products on par with big industrial houses affect growth of MSMEs As the calculated significant value is 0.000 which is less than 0.05 we reject NULL hypothesis and accept alternative hypothesis Thus, we conclude, Govt.‟s levy of taxes on MSME products affects growth of MSMEs due to high cost and competitiveness and in-turn affects adversely growth of MSMEs Ho: MSMEs not depend on support of big industrial houses for its growth H1: MSMEs depend on support of big industrial houses for its growth As the calculated significant value is 0.000 which is less than 0.05, we reject NULL hypothesis and accept alternative hypothesis Thus conclude the MSMEs growth depends on support of big industrial houses as when they stop buying from MSMEs and their support is a must for growth for MSMEs Ho: Availability of cheaper loans by PSU Banks to MSMEs does not help for its growth and success H1: Availability of cheaper loans by PSU Banks to MSMEs does help for its growth and success As the calculated significant value is 0.000 which is less than 0.05, we reject NULL hypothesis and accept alternative hypothesis We conclude that making availability of cheaper loans (Soft Loans) to MSMEs will enable to more production, less cost, more competitiveness and hence it will help in growth and success of MSMEs Ho: Govt.‟s support on technology upgradation to MSMEs does not enable MEMEs growth H1: Govt.‟s support on technology upgradation to MSMEs enables MSMEs growth As the significant value calculated is 0.000 which is less than 0.05, we reject NULL hypothesis and accept alternative hypothesis and conclude that any Govt.‟s initiatives and support on technology upgradation to MSMEs at cheaper cost or subsidy or free, would help growth of MSMEs as it will reduce cost and more profit, more growth for MEMEs Ho: New taxation rules, compliance system which are computer based does not affect growth of MSME and its success H1: New taxation system, compliance thro‟ computer does affect profit of MSME and its growth and success As the calculated significant value is less than o.05 NULL hypothesis is rejected and alternative hypothesis is accepted Thus we conclude, the new taxation system, compliance of reports, returns thro‟ compute affects MSMEs growth as it involves additional cost for engaging professionals and non-compliance attracts penalty on MSMEs Ho: In the present globe as the market, tariff, levies by foreign countries on products of our MSMEs does not affect growth and success of MSMEs H1: In the present globe as the market, any increase, levies by foreign countries on products of our MSMEs affect badly due to high cost, competitiveness http://www.iaeme.com/IJM/index.asp editor@iaeme.com Impact of Public Sector Banks Assistance to MSME: A Case Study with Reference to MSMEs and their Performance As the calculate significant value is less than 0.05, the NULL hypothesis is rejected and alternative hypothesis is accepted Thus, we conclude any levies, taxes on our MSMEs products by foreign Govts Does affect badly MSMEs growth as it adds to further cost for consumer for them and due to competitiveness goods may get rejected affecting growth and success of our MSMEs Ho: Cheaper power and concessional raw materials by Govt to MSMEs does not affect growth and success of MSMEs H1: Cheaper power, concessional raw materials by Govt to MSMEs affect growth and success of MSMEs As the calculated significant value is less than 0.05 we reject NULL hypothesis and accept alternative hypothesis Thus, we conclude availability of cheaper power; raw materials will help to reduce cost of production for MSME and in-turn enable growth and success of MSMES Ho: The enterprise / entrepreneurs honesty, integrity does not affect growth of MSMEs H1: The enterprise / entrepreneurs honesty, integrity affects growth of MSMEs As the calculated significant value is less than 0.05, we reject NULL hypothesis and accept alternative hypothesis Thus we, conclude, a honest and integrity company / firm / entrepreneur enables timely repayment of loans, finishing returns to Govt payment of taxes and thus avoid penalties, which encourages Banks, other agencies to recognise the requirements of MSMEs, considers further loans at concessional rates will definitely help growth of MSMEs Dishonest cases are bound to be rejected by Banks and hence affects 4.3 Test for Reliability and Correlation Analysis Findings There is relation between financial assistance provided to MSMEs and its success and more assistance enables more growth The other factors like technology changes, availability of cheaper substitutions etc are also responsible and contribute for growth and success of MSMEs as they are correlated The positive Govt policies are correlated to MSMEs growth and would be helpful for growth and success of MSMEs The Govt policy on imposing heavy duty on imported goods are correlated to the MSMEs growth and higher levy by Govt would enable MSMEs to grow and succeed The Govt.‟s supportive schemes on PSUs purchase preference of MSME goods are correlated and such moves of Govt would enable MSME to increase sales, growth and in-turn succeed The global recession is correlated to MSMEs and it adversely affects growth of MSMEs as its turnover gets reduced The availability of cheaper imported substitute goods (like Chinese products) has relation with MSMEs growth and such availability would affect MSMEs turnover and growth The heavy taxes being levied on goods produced by MSMEs has relation with MSMEs growth as the increased tax increase cost and in-turn less competitive and less sales, less growth of MSMEs The support of ancillary units of MSMEs by big industrial houses has relation with the growth of MSMEs and more support by them would enable MSMEs to increase production, turnover and growth http://www.iaeme.com/IJM/index.asp 10 editor@iaeme.com Krishnaswamy Ramaswamy, Rajesh Vaidya, Mangipudi Mruthyanjaya Rao and KDV Prasad 10 Govt.‟s initiative for making available of subsidized raw material s relation with the growth of MSMEs as it would enable to reduce cost of production of MSMEs and in-turn its growth 11 Govt Banks making availability of soft bank loans to MSMEs has relationship with growth of MSMEs as it would enable MSMEs to avail, reduce its finance cost, and reduce cost of production and in-turn growth 12 Govt.‟s making available of imported good production technology has relationship with MSMEs growth as it would enable to reduce cost of production and more competitiveness 13 The introduction of new taxation system, online filing etc computers savvy schemes has relation with MSMEs growth as it increased additional cost and in-turn less profit and affects growth, unless Govt initiates availability of such facilities at cheaper rates 14 The levy of import duties on goods by foreign Govt is related MSME on any such levy will adversely affect MSMEs due to increased cost for consumer and likely good of rejection in-turn less competitiveness of our products, affects MSMEs growth 15 Govt.‟s making available of cheaper power cost for MSME is related to growth of MSMEs as it adds to reduction in cost of production and in-turn more profit, growth and success of MSMEs 16 The honesty, integrity of entrepreneur, firms, enterprise is related to growth of MSMEs as dishonest, way of doing business, evasion of duties, non-payment of interest to Banks for loans, diversion of business funds for private uses, gambling, real estate investments etc affects MSMEs credibility in-turn refusal by banks, levy and penalty by Govt and in-turn affects growth of MSMEs and its success CONCLUSIONS The MSME sector facing multiple challenges, including various regulations of RBI, Government, etc., with stress on high quality, competition with high enthusiasm, positive approach and the hunger for higher growth and success Against all odds like recession, high inflation, higher cost, MSME sector is growing and needed some more support like grants/loans, advances of soft loans, subsidies to strengthen and beneficial outcomes of MSME MSME have a humanistic approach not always thrive for profits and the recent example of 18 football trainees and coach caved in Thailand where MSME firms supplied free oxygen MSME firms need continuous nourishment, monitoring to the benefits at the fullest level our of MSME – more production, higher GDP, more employment in turn more prosperity to the country MSME firms need support socially, economically, technologically, financially to justify the purpose of various introductions to MSMED act, amendments are justified The MSME firms unique character is hard work, dedication, in the base of growth and success Even the Sky is not limit for the MSMEs The magic mantra of Unity is Diversity is not prevailing anywhere in the world Let us make industrial revolution growth and success and lead the rest of other nations on this front too SCOPE FOR FURTHER RESEARCH The Current study can be further extend to analyse new techniques, ways, schemes, innovative ideas, adopting foreign countries successful plans, for further speedy growth of MSMEs More study in above will thromore solutions Necessity is the mother of invention The urge should be continuous and the hungry must be more at it is a Life line of the nation http://www.iaeme.com/IJM/index.asp 11 editor@iaeme.com Impact of Public Sector Banks Assistance to MSME: A Case Study with Reference to MSMEs and their Performance This can definitely yield more beneficiary, effective, useful ideas, schemes from Government, Banks, and MSMEs and also from entrepreneurs of MSMEs SUGGESTIONS FOR GROWTH AND SUCCESS OF MSMES For growth and success of MSMEs, as it is inter-related with other agencies, actions / steps to be taken by them are suggested as below: Govt of India To Expedite amendment to MSMED Act Bill now pending (MSMEs on the basis of annual turnover) Reduce IT / GST and other levies for MSMEs goods Grant interest, power subsidies and more incentives To bring petroleum products under GST for less cost Award star ratings for best MSMEs to encourage comply with the rules / Acts Advise PSUs to give support for MSMEs on procurement, release of funds, & technology Reserve Bank of India Strict compliance of its guidelines and expedite redressal of MSME To issue clear and friendly guidelines for sanction, release and handling sick MSMEs PSU Banks Adopt positive, sympathetical, practical and friendly attitude while handling MSME cases MSME Department Give good and latest technology, accounting system free for MSMEs Act as coordinator of MSMEs with banks and Govt Entrepreneurs of MSMEs Be honest, smart working, use latest and innovative methods, be Rule / Act compliance to tap global market Never divert bank loans for personal and other purposes and ensure prompt repayment of loans REFERENCES [1] Ministry of Micro, Small and Mediun Enterprises Government of India 2018 https://msme.gov.in/know-about-msme [2] An Overview of India‟s Economic Performance 2018 Economic Survey 2017-18, Chapter 1, Pages 1-25 [3] World Economic Outlook Database 2018 International Monetary Fund 17 April 2018 [4] MSME Amendment act 2016 http://pib.nic.in/newsite/PrintRelease.aspx?relid=176353 [5] Annual Reoport 2017-2018 Reserve Bank of India New Delhi, pp 268‟ [6] Kothary, C.R, and Gaurav Garg Research Methodology: Methods and Techniques New Delhi : New Age International (P) Limited, Publishers, 2019 [7] Senapati, M P Marketing of small business: A Case of Small Business in India IOSR Journal of Business and Management, 16(5), 8-11 2014 [8] Katyal, A., & Xaviour, B A study on MSMEs‟- Role in Propelling Economic Development of India 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Satpathy and Nihar Ranjan Samal, Determinants of Infrastructure (Home) Loan in Indian Public Sector Banks, International Journal of Civil Engineering and Technology, 9(5), pp 1001–1009 2018 http://www.iaeme.com/IJM/index.asp and Medium 13 Enterprises, Government of India editor@iaeme.com ... http://www.iaeme.com/IJM/index.asp editor@iaeme.com Impact of Public Sector Banks Assistance to MSME: A Case Study with Reference to MSMEs and their Performance As the calculate significant value is... the data is reliable as it is 71% editor@iaeme.com Impact of Public Sector Banks Assistance to MSME: A Case Study with Reference to MSMEs and their Performance 3.5 Hypotheses Hypotheses that have... line of the nation http://www.iaeme.com/IJM/index.asp 11 editor@iaeme.com Impact of Public Sector Banks Assistance to MSME: A Case Study with Reference to MSMEs and their Performance This can definitely