Synopsis:

Title of the study:

“Role of commercial banks in financing small scale industries”

The Indian economy has recovered remarkably after the dark days of early nineties. It has
been since growing at a steady clip and it agrees well for all segments of the society and
industry.

The Indian Small scale industry is a vital driver of Indian industry. It has over the years
consistently outperformed the large scale industry. It is one of the highest employers of
Indian Economy. The small scale industry, as an important segment of the economy
accounts for 95%of the industrial units, 40% of the manufacturing , 35%of the total
exports and provides employment, to around 17mn people. The sector covers a wide
spectrum of industries categorized under small, tiny, and ancillary segments. The SSI
sector has been acting as a nursery the development, of the entrepreneurial talent. The
sector has received sp., attention from the policy makers in addressing its requirements,
credit, marketing, technology, entrepreneurship dev., fiscal or infrastructure support etc.
As regards arranging finance for small scale industries the need for finance can be
classified into the following types:
1.Long and medium term loans
2.Short term or working capital requirements
3. Risk capital

Rationale behind the study

SSI sector contributes effectively towards the overall growth of an economy. Financing
the SSI sector is one of major tasks in the hands of govt. and people. The study is
conducted to understand that up to what extent the commercial banks in India helps to
improve the SSI sector.

Objectives of the study

• Study the role of commercial banks in financing the SSI

• Study whether SSI units are satisfied with the services of commercial banks
• Study the reasons for switching of SSI units from a previous bank