MSME to be focus area for Bank of Baroda
MSME to be focus area for Bank of BarodaKolkata, Aug 17 (KNN) Micro Small and Medium Enterprises (MSMEs) account for 23 per cent of the total loan portfolio of the Bank of Baroda (BOB).
The loan portfolio for MSMEs for BOB is much higher than the retail and agriculture sector.
The Mumbai based BOB which has a large network of overseas branches is eyeing the MSME sector for further growth, Chairman and Managing Director of BOB SS Mundra said here yesterday.
Speaking on the side-lines of the Federation of Indian Chambers of Commerce and Industry (FICCI) banking conclave, Mundra said the focus on the retail, agriculture and MSMEs is imperative in the wake of slowdown in the loan demand from big corporates and new investment.
The bank has sought a capital infusion of Rs 1, 800 crore which is likely to be through preference shares.
Meanwhile, retail comprises 16-17 per cent of its total loan portfolio while, agriculture accounts for 14 per cent.
The corporate portfolio is expected to grow at only two-three per cent. (KNN/GUNJ)