Expected more support for NBFCs & MSMEs in Budget: U Grow Capital

New Delhi, Feb 2 (KNN) Terming the Union Budget 2021 as an encouraging event, the U GRO Capital, Executive Chairman & Managing Director, Shachindra Nath has sought a distinctive support for NBFCs and promoting the credit guarantee scheme for MSMEs.

''Holistically, the Union Budget 2021 is an encouraging event, yet we optimistically look forward to a distinctive support for NBFCs, with a framework to provide them sufficient liquidity, while also furthering the credit guarantee scheme support to the MSMEs,'' he said on Monday.

He also said that it's a significant attempt by the government, to accept a higher fiscal deficit and enhance expenditure towards economic revival.

Shachindra Nath further said that it is appreciative of the government to put a special emphasis towards providing relief to the taxpayers and reducing the burden posed by COVID-19.

''One of the key highlights of the budget is setting-up of the development finance institution (DFI) towards infrastructure financing and institutional framework to purchase corporate bonds, which would solve the issue of liquidity for the infrastructure sector and corporate bond market. Also, with the path-breaking initiative of instituting Asset Reconstruction Company (ARC) and asset management company (AMC) for NPA consolidation, banks have been allowed to streamline their focus on the much needed growth,'' he added.

He said that the government has reduced the threshold for NBFCs to initiate recovery under the SARFAESI Act, 2002 and added, ''this is an effective step towards ushering credit discipline and in the long-term will increase the penetration of credit to small businesses.''

Commenting on the MSME budget allocation, he asserted that the government has also doubled its allocation towards MSMEs, which would greatly support their revival and the eventual growth.