State Bank of Hyderabad reserves Rs 9000 crore to fund MSMEs
Updated: Apr 30, 2013 01:07:52pm
Coimbatore, Apr 30 (KNN) The State Bank of Hyderabad (SBH) with 39 MSME speciality branches across the country has reserved Rs 9,000 crore for providing loans to the MSME sector during this financial year.
Being the MSME year, more focus would be laid to lend to micro, small and medium enterprises (MSME) and the bank is therefore providing about 50 per cent of total advances to the sector, a media report quoting General Manager, Retail Network, South Zone-II, SBH B Ganesh Pai said.
The bank also has plans to open five additional branches in the country.
Speaking about the reservation to extend loans to certain industries coming under MSME due to recovery problems, he said though the bank is facing the challenge of recovery, particularly from the power-starved Tamil Nadu, SBH is choosing those units that are not power intensive, such as those having a good generator back up facility.
The bank's overall non-performing asset under MSME portfolio is about five per cent and loans were given at an interest rate of 11.5 per cent to 16.5 per cent, he told the media.
SBH has trained 20 per cent of its employees to deal with the MSME sector. In addition, the bank is planning to train another 20 per cent employees to meet the increasing needs of the sector, through international training facility. (KNN)
Being the MSME year, more focus would be laid to lend to micro, small and medium enterprises (MSME) and the bank is therefore providing about 50 per cent of total advances to the sector, a media report quoting General Manager, Retail Network, South Zone-II, SBH B Ganesh Pai said.
The bank also has plans to open five additional branches in the country.
Speaking about the reservation to extend loans to certain industries coming under MSME due to recovery problems, he said though the bank is facing the challenge of recovery, particularly from the power-starved Tamil Nadu, SBH is choosing those units that are not power intensive, such as those having a good generator back up facility.
The bank's overall non-performing asset under MSME portfolio is about five per cent and loans were given at an interest rate of 11.5 per cent to 16.5 per cent, he told the media.
SBH has trained 20 per cent of its employees to deal with the MSME sector. In addition, the bank is planning to train another 20 per cent employees to meet the increasing needs of the sector, through international training facility. (KNN)
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