Digitalisation boosts farm and MSME lending in India

MUMBAI: The chairman of SBI, C S Setty, stated that digitalization has significantly improved lending to farms and micro, small, and medium enterprises (MSMEs). He mentioned that government initiatives to digitalize these sectors have made it easier for banks to provide loans. Setty spoke at the 77th Annual General Meeting of the Indian Banks' Association (IBA) on Sunday. He emphasized that digital tools have allowed banks to create new ways to offer credit, especially to those who previously struggled to access it. M V Rao, the chairman of IBA and MD & CEO of Central Bank of India, and financial services secretary M Nagaraju were also present at the meeting. Nagaraju highlighted that banks have performed well over the past three years, particularly in the recent quarters of this fiscal year. He urged banks to focus on enhancing their capabilities, effectively raising capital, and managing resources more efficiently. Setty also stressed the importance of banks in economic development and called for collaboration among financial institutions to share best practices and insights.