KVGB set to achieve 1500 cr credit disbursal for MSMEs by 2017

Dharwad, June 4 (KNN) Karnataka Vikas Grameena Bank (KVGB) has set a target of disbursing Rs. 1500 crore to MSME (micro, small and medium enterprises) sector by the end of second quarter of 2016-17, said Umesh Bani, Chief Manager, Credit.

Talking to KNN, he said that the MUDRA bank has given a target of Rs. 1500 Crores for the disbursal of credit to MSMEs and we mat achieve it.

"Last year our disbursement was around Rs. 1027 crores which we have achieved," he said.

He further said that the beneficiaries are small business entrepreneurs like retail traders, manufacturers, service sector.

The bank has 611 Branches in rural and urban areas of Karnataka.

He said “We do not ask for any security upto the loan of Rs. 50000.”

When asked about the Non-Performing Assets (NPAs), he revealed that NPAs and defaulters are there which is around 2.9 per cent but the recovery rate is 80 per cent.

MSMEs are paying the loans on time, said the Chief Manager.

Headquartered in Dharwad, the regional rural bank has jurisdiction over Dharwad, Gadag, Haveri, Vijayapura, Belagavi, Bagalkot, Uttara Kannada, Udupi and Dakshina Kannada districts. (KNN Bureau)