BANKING AFFAIRS

Detailed explanation-1: -SMERA was set up in association with SIDBI and several banks in both public and private sectors in 2005 exclusively for the Indian SME segment.

Detailed explanation-2: -SMERA is the country”s first rating agency that focuses primarily on the Indian SME segment. SMERA”s primary objective is to provide ratings that are comprehensive, transparent and reliable. This would facilitate greater and easier flow of credit from the banking sector to SMEs.

Detailed explanation-3: -In the year 2005, RBI had informed all banks that ‘The National Small Industries Corporation has recently introduced a Credit Rating Scheme for encouraging SSI units to get themselves credit rated by reputed Credit Rating Agencies.

Detailed explanation-4: -A CRISIL SME Grading is an indicator of overall creditworthiness of an enterprise arrived at by analysing its operating and financial strength. A good grading provides comfort to all your stakeholders. The SME Grading is provided on a 8-point scale. SME grading from CRISIL carries weight with lenders.