made by Vishal Patil, Neha Jain, Malay Srivastav

1. Neha Jain
Malay Srivastava
Naveen Panchal
Vishal B. Patil

2. Who are the Lenders????
Who are the Borrowers????
Origin of Lending and Borrowing???

3. India
Classification Manufacturing Service Enterprises
Enterprises
Micro Upto Rs.25 lakh Upto Rs.10 lakh
Small Above Rs.25 lakh & upto Above Rs.10 lakh &
Rs.5 crore upto Rs.2 crore
Medium Above Rs.5 crore & upto Above Rs.2 crore & upto
Rs.10 crore Rs.5 crore
Source : Ministry of Small Scale Industries vide its notification
No. S.O. 1722(E) dated October 5, 2006.

4. JAPAN
Classification Large Medium Small
Manufacturing >200 200> >13 13>
Wholesale Trade >66 66> >3.33 3.33>
Retail Trade > 33 33> >3.33 3.33>
Services >66 33> >3.33 3.33>
Above Numbers in Rs. Crore
Conversion Rate Used 1 Yen = Rs. 0.658
Source: Japan International Cooperation Agency , 2009

5. FRANCE AND GERMANY
Category Employees Turnover(Thresh Balance sheet
old) Total (Threshold)
Micro <10 14 14
Small <50 68 68
Medium-Sized <250 340 292
Above Numbers in Rs. Crores
Conversion rate 1 Euro= Rs. 68.58
Source: European Commission 2003, Commission Recommendation of
06/05/2003
concerning the definition of micro, small and medium-sized enterprises,
Brussels

6. Country GDP GDP(In Rs. SME % Loan Value
(Rank) In $ trillion) GDP as % of
trillion (@ 45.02, (2010- GDP
31 March 2010) 2011)
USA(1) 14.582 657.4 51 4.93
China(2) 5.878 265.02 58.5 48.67
Japan(3) 5.497 247.82 - 35.90
Germany(4) 3.309 149.206 53.8 -
France(5) 2.560 115.410 56 10.64
India(9) 1.729 77.947 8 4.34
(World GDP $ 63.044 trillion )(World Bank, 2010)
Source: www.CGAP.org (Independent Evaluation Group)
www.data.worldbank.org , European Commision (SBA Fact Sheet)
ASSOCHAM, www.gov.cn(China Government Website)

8.  Debt
 3100 BC :Dates back to ancient worlds, clay tablet recording
Interest bearing loans in Mesopotamia(3100 BC)
 1171 Republic of Venice issued Bonds at 5% interest rate to
replete war depleted treasury.
 1262-1379 credibility of bonds was established and were
traded in Italian cities and beyond.
 Equity Market
 1259- Shares of Bazacle Mill company were traded(France).
 1288- Swedish Company Stora documented share transfer.
 1500- British Merchants started experimenting with Joint
stock companies.
 1600- East India Company.
 1602- Dutch East India Company issued share and was
traded on Amsterdam stock Exchange.
 1856- Joint Stock Option company Act provided Limited
Liability for all Joint Stock Company.

9.  1460- Stock Exchange can be tracked back to Antwerp, Belgium.
 1602- Amsterdam Stock Exchange.
 1602- First IPO by Dutch East India Company.
 1698- London Stock Exchange.
 1792- 24 Stockbrokers established rules for buying and selling of
bonds and shares of companies, Buttonwood agreement.
 1817- NYSE Board Established by signers of Buttonwood
agreement.
 1875- The Native share and Stock broker Association (Bombay
Stock Exchange.)
 1992- NSE India.
 1971- NASDAQ, Worlds First Electronic Stock Exchange.
 Source:
 http://en.wikipedia.org/wiki/Stock_exchange
 http://www.thepicky.com/business/amsterdam-stock-exchange-
worlds-first-stock-exchange/
 http://en.wikipedia.org/wiki/Dutch_East_India_Company

11.  International Finance Corporation(Est. 1956), World Bank has 1.3
mn loans outstanding to SME totaling $97.1 bn globally(end of
2009)(www.ifc.org)
 Asian Development Bank (Est. 1966) Outstanding Loan to India $
24.122 bn(31 Dec 2010) (www.adb.org)
 Adoption of Sophisticated Credit Scoring Methodology by Wells
Fargo of USA. By 2004 $ 6.3bn Outstanding loan to SME, 94%
were Unsecured.
 1981(Technology adoption)-Online Services started in Newyork
by Citibank, Chase Manhattan where keyboards were used an
signals were send through phonelines.
 1994-Stanford Federal Credit Union started online Internet
Banking Services, California.
Introduction of packages and tools for financing trade
 Trade Financing Instruments( Letter of Credit, Counter Trade,
Factoring, Pre shipping Financing, Post shipping Financing)
 Export Credit Insurance.
 Export Credit Guarantees.

12.  SIDBI(April1990, promote, finance and develop Small sectors)
 Opening of Indian Economy.
 MSMED ACT 2006, Credit facility for MSME as per
instruction and guidelines of RBI.
 SMERA joint venture between SIDBI and Dun and Bradstreet
Information services India private Ltd.(2005)(Wikipedia and
SMERA website)
 CIBIL(Incorporated 2000, caters to commercial and Consumer
Segments.)
 www.bsesme.com (Prime Minister Task Force recommendation,
Jan 2010 dedicated stock exchange/platform for SME)
 New IIP will track growth of SME(proposed).(www.cii.in)

13.  Indian Bank Rs(Advances)
 SBI 1,10,812
 ICICI 71720
 PNB 45296
 Canara Bank 29958
 Bank Of Baroda PNB 27365
 Bank Of India 21000
 UCO Bank 15727
 Central Bank of India 11901

14. Foreign Bank(Top 5 Global Bank in India)
 Citi Bank, Standard Chartered Bank,
HSBC, Deutsche Bank, Barclays.
International Development Institutions
 Asian Development Bank.
 IFC, World Bank.

15.  End User
SME(http://rbidocs.rbi.org.in/rdocs/content/PDFs/78396
.pdf)
 Rating Agency.
 Banks.
 Promoters
 Employee.
 Government.
 Government Schemes.
 Government Bodies like NABARD, PFC.
 RBI.
 Lobbyist.
 NBFC.
 Venture capitalist.
 IT service providers.

16.  No. of Branches.
 Geographical coverage.
 Interest Rate.
 Transparency.
 Information Confidentiality.
 Efficiency in Operation.
 Fees and Charges.
 Interest.
 Services(Funded, Non funded, Value Added Services, Internet
Banking).
 Collateral/Security.

18. 9
8
7
6
5
Banks
4
3 NBFC
2
Venture
1 Capitalist
0

19. Thank You

20.  Early History: Blood Money, Bride Money.
 Stone Age: Precious Metals.
 3rd Millennium BC: Earliest Banking.
 700 BC : Coins(Lydia)
 500 BC: International Banking.
 118 BC: Fiat Money(China)
 800 AD: Printed Note (China)
 17th Century: Modern Banking Note(Amsterdam)
Source : http://www.sics.se( Swedish Institute)

21.  “ All the participants in the summit
reiterated that limited access to financial
services was primarily due to lack of
information on SME. While higher interest
rate and lack of collateral were some of the
key constraints faced by SME in
undertaking economic activity , limited
credit data and information on SME
resulting in bank’s reluctance to grant
credit to SME.
 (Report from CII, Ministry of MSME,)