Bank credit for exports falling, says Vijaya Bank

Credit availability is a big concern, particularly for the small and medium enterprises, with the share of export credit by banks in total exports constantly declining, said Vijaya Bank Executive Director K R Shenoy on Thursday. 

“It is true that the share of export credit by banks in total exports is constantly on the decline. Export credit by banks as percentage of total exports has come down to 11.36 per cent at Rs 1.85 lakh crore in 2012-13 from 19.82 per cent in 2007-08 at Rs 1.29 lakh crore,” Shenoy said, talking at the Exporters Meet 2013 conducted by the bank.

“The initiatives taken by Reserve Bank of India and the government of India have contributed to impressive increase in our exports,” Shenoy said. 

FKCCI President R Shivkumar called upon the bank to conduct training programme for exporters to encourage new entrepreneurs and guide them in all respects other than providing credit facilities. KASSIA President B P Sashidhar echoed similar views and suggested that such training programmes may be extended to MSME entrepreneurs in Karnataka to start with.