Indian Journal of Industrial Relations: Economics & Social Dev.

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Co-creation: An Exploratory Study of MSMEs & Large Banks in India


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1 CIMER, Indian Institute of Management, Indore 453331, India
     

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The major factor which reduces the profits of Indian banks relates to the policies of Government of India. The government has rules which mandated banks operating in India to help the priority sectors which included Medium and Small Enterprises (MSMEs). The lending rules to MSMEs increased the Non Performing Assets (NPAs) as MSMEs did not adopt the best management practices and there was no strategic planning. As a strategy banks converted this regulatory issue into an opportunity by using co-creation of intangible resources such as Customer Relations with corporate, Information Technology implementation and Best Management Practices dissemination. They used these intangible resources to reduce risks and NPAs, increase profits and help MSMEs to be contemporary, thus creating value through partnership.
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  • Co-creation: An Exploratory Study of MSMEs & Large Banks in India

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Authors

Prashant Salwan
CIMER, Indian Institute of Management, Indore 453331, India

Abstract


The major factor which reduces the profits of Indian banks relates to the policies of Government of India. The government has rules which mandated banks operating in India to help the priority sectors which included Medium and Small Enterprises (MSMEs). The lending rules to MSMEs increased the Non Performing Assets (NPAs) as MSMEs did not adopt the best management practices and there was no strategic planning. As a strategy banks converted this regulatory issue into an opportunity by using co-creation of intangible resources such as Customer Relations with corporate, Information Technology implementation and Best Management Practices dissemination. They used these intangible resources to reduce risks and NPAs, increase profits and help MSMEs to be contemporary, thus creating value through partnership.

References