The initial corpus fund of ₹2,500 crore of the Trust was contributed by the Government of India (GoI) and Small Industries Development Bank of India (SIDBI) in the ratio of 4:1. During FY 2019, the Trust received ₹715 crore towards Corpus contributed by GoI, taking the aggregate corpus amount of individual contributions of GoI and SIDBI to ₹6,414.90 crore and ₹500.00 crore respectively. Thus, as on March 31, 2019, the total contributed Corpus was ₹6,914.90 crore. Year wise corpus contribution is given below:
During the period under review, CGTMSE included Small Finance Banks as Member Lending Institutions (MLIs). The overall number of MLIs of the Trust is 116 where, 21 Public Sector Banks, 19 Private Sector Banks, 51 Regional Rural Banks, 5 Foreign Banks, 9 other Financial Institutions (5 SFCs and 4 FIs), 8 Non-Banking Financial Companies and 3 Small Finance Banks are registered MLIs for availing guarantee cover from the Trust.
2.1 During the year, following are the top performing MLIs:
|Sr. No.||PUBLIC SECTOR BANKS|
|1||STATE BANK OF INDIA|
|2||BANK OF INDIA|
|3||BANK OF BARODA|
|6||INDIAN OVERSEAS BANK|
|7||ORIENTAL BANK OF COMMERCE|
|8||UNION BANK OF INDIA|
|9||PUNJAB NATIONAL BANK|
|Sr. No.||PRIVATE SECTOR BANKS / FOREIGN BANKS|
|1||HDFC BANK LIMITED|
|2||YES BANK LTD|
|3||AXIS BANK LIMITED|
|4||THE JAMMU & KASHMIR BANK LTD|
|5||STANDARD CHARTERED BANK|
|Sr. No.||SMALL FINANCE BANKS|
|1||EQUITAS SMALL FINANCE BANK LIMITED|
|2||AU SMALL FINANCE BANK LIMITED|
|Sr. No.||NON-BANKING FINANCE COMPANIES|
|1||TATA MOTORS FINANCE LIMITED|
|2||MAGMA FINCORP LIMITED|
|3||TATA CAPITAL FINANCIAL SERVICES LIMITED|
|3||ECL FINANCE LIMITED|
3.1 As at end of March 31, 2019, there were 97 active MLIs which were availing guarantee cover. The graph shows year-wise guarantee approvals from inception till March 31, 2019:
3.2 During FY 2018-19, a total of 4,35,520 guarantees were approved for an amount of ₹30,168 crore as compared to approval of 2,63,195 guarantees for ₹19,066 crore in the previous year. Cumulatively, as at March 31, 2019, a total of 34,60,432 accounts have been accorded guarantee approvals for ₹1,75,961 crore.
3.3 Guarantee coverage in FY 2019 – MLIs’ Category wise
3.4 Slab-wise Coverage
Of the 4,35,520 proposals for ₹30168 Crore approved in FY 2019, proposals for an amount of ₹6,638 crore (22%) pertained to credit facilities up to ₹5 lakh, proposals for an amount of ₹5,669 Crore (19%) are having credit facilities in the range of ₹5 - 10 lakh, proposals for an amount of ₹1,895 Crore (6%) are in the range of ₹10 – 15 lakh, proposals for an amount of ₹3,889 Crore (13%) are in the range of ₹15 - 25 lakh and proposals for an amount of ₹6,340 Crore (21%) are in the range of ₹25 lakh - 50 lakh, proposals for an amount of ₹3,786 Crore (13%) are in the range of ₹50 – 100 lakh and proposals for an amount of ₹1,951 Crore (6%) are in the range of ₹100 – 200 lakh.
Slab-wise Guarantee Approved Amount % wise in FY 2019
3.5 State wise coverage
3.6 Claim Settlement
During FY 2018-19, claims in respect of 36,351 units were settled for an amount of ₹758.18 crore towards first instalment of claim. Further, during the year, 2,596 claims for an amount of ₹58.38 crore were settled towards final instalment of claim. Total number of claims settled during FY 2019 were 38,947 for an amount of ₹816.56 crore. CGTMSE has so far settled 2,14,411 number of claims amounting to ₹5,362.09 crore cumulatively till March 31, 2019.
3.7 Post claim settlement recoveries
The recoveries received from the MLIs after settlement of first claim has increased during FY 2018-19. The Trust received ₹209.63 crore on this account as against ₹177.94 crore received during FY 2017-18. The improvement is mainly on account of focussed attention given by the Trust to post claim settlement monitoring mechanism.
a). M/s. Kochar & Associates, Mumbai, a firm of Chartered Accountants, was appointed as internal auditors of CGTMSE, for FY 2018-19. The Auditors undertook a comprehensive review of the entire systems as also undertook audit covering revenue, expenses, investment, etc.
b). As recommended by the Comptroller and Auditor General of India, the Board appointed M/s. Jain Tripathi & Co., Mumbai, a firm of Chartered Accountants, as Statutory Auditors of CGTMSE for FY 2018-19.
The Trust earned gross income of ₹1,700.98 crore, comprising mainly Guarantee Fee (₹207.80 crore) and Annual Guarantee and Service Fee (₹518.32 crore), Income earned on investments (₹702.35 crore) and Recoveries from MLIs (₹209.63 crore). The Trust incurred an amount of ₹9.79 crore towards various operational and administrative expenditure. Yearly provisioning is being made on the basis of actuarial valuation of liability of the Trust since FY 2009. The details of the provision for FY 2018-19 are given below:
As at March 31, 2019, the cumulative provision is estimated at ₹2,936.52 crore. The excess of income over expenditure was ₹83.38 crore after provision for claims as per the Actuarial valuation.
During the year, the Trust received Corpus contribution from its settler of GoI to the extent of ₹715 crore. This, together with the corpus contributions already received, and the net income earned by the Trust so far, had been invested in FDs of banks / institutions and MFs. The size of the Corpus of the fund as on March 31, 2019 stood at ₹6,914.90 crore. The total fund as at March 31, 2019 stood at ₹10,517.31 crore (net of accrued interest) as against ₹8,655.16 crore as at the end of the previous year.
3.10 Management & Organisation
During FY 2018-19, the Board of Trustees comprised of Chairman & Managing Director of SIDBI as ex-officio Chairman, Additional Secretary & Development Commissioner (MSME), Ministry of Micro, Small and Medium Enterprises (MSME), Government of India as ex-officio Vice-Chairman, the Chairman, Indian Banks’ Association (IBA) as ex-officio Member and Chief Executive Officer of CGTMSE as Member Secretary. During FY 2018-19, three meetings of the Board of Trustees were held. As on March 31, 2019, five officers including the CEO were on deputation with CGTMSE from SIDBI.
The Board of Trustees of CGTMSE appreciates the support and cooperation received from Ministry of MSME, Government of India, Office of DC (MSME), SIDBI, RBI, IBA, MLIs of CGTMSE, various international, national and state-level institutions and MSE Industry Associations.