From a banking perspective, this improves cash-flow visibility, shortens working-capital cycles, and enables safer, receivable-backed lending rather than collateral-heavy approaches.

Also the  proposed ₹10,000 crore SME Growth Fund complements traditional bank credit by addressing the equity gap for scalable MSMEs. This is positive for banks as better-capitalised enterprises typically demonstrate stronger repayment capacity and lower credit risk, creating opportunities for long-term lending and cross-sell. Expanded credit guarantee coverage further strengthens lender confidence, particularly for micro and small enterprises, supporting both growth and priority sector objectives.

The Budget also reinforces data-led credit delivery, with integration across platforms such as GeM, GST, and TReDS, allowing banks to sharpen underwriting, pricing, and early-warning mechanisms. Overall, Budget 2026 moves MSME banking from volume-driven lending to cash-flow-based, digitally enabled, and risk-calibrated financing, while placing strong emphasis on formalisation, resilience, and sustainable growth of the MSME ecosystem.”

The post Union Budget 2026: Bank of Baroda on MSMEs | Madhur Kumar, CGM MSME Banking appeared first on The India Bizz Startup News Website.

The post Union Budget 2026: Bank of Baroda on MSMEs | Madhur Kumar, CGM MSME Banking appeared first on The India Bizz Startup News Website.