The revival of Sick MSME by Strategic Partnership
When MSME Sick unit is in SMA0, SMA1 and SMA2 apart from recent NPA, if banks have a positive attitude, Can we revive the unit by supporting the existing management as per RBI circular of March-2016 by proper handholding and equity support?
As per MSME pulse 28/2/2018, 74000cr is NPA in MSME. M/S Growth Idea Lab can perform above functions namely handholding & equity infusion, probably in two or three stages, as in crisis phase valuation of the enterprise will be low and in growth phase valuation will be higher but margin money has to be bought for growth along with repayment of old dues.
Case by Case basis, a strategic partnership may be one possible solution where the bank has limited to loose and entrepreneur has nothing to lose.
Please give your comments/suggestions.