More specifically, in order to support emerging and small firms in their efforts to solve the problems they face – risk money and a lack of real estate collateral – the Bank provides funds to financial institutions that undertake equity investments and offer the so-called asset-based lending, or ABL, to firms with growth opportunities up to the actual amount of investment and lending carried out by each financial institution.
The impending competition from new banks and the large number of new accounts opened under the PMJDY Scheme are two instances that readily come to mind of the challenges that could be turned into opportunities. Besides this, banks as the key players in the country’s financial system also carry the responsibility of supporting economic growth, once the economic cycle turns favourable.