SBI plans to convert some existing branches to dedicated SME branches
Updated: Oct 06, 2014 12:44:32pm
Mumbai, Oct 6 (KNN) The country’s biggest public sector lender, State Bank of India (SBI) is focusing on increasing its SME loan businesses by converting some of its existing branches into dedicated SME branches.
In an interview to PTI, SBI Chairperson Arundhati Bhattacharya said that, “Earlier, we had sourcing teams and branches for SMEs, and sanction was done after being appraised by the SME city credit cell, that is a factory concept. But we have found that there is a lack of ownership in such a business model, so, we are now getting dedicated SME branches that will only do SME advances."
Under the new model, the people who source the loans will not only appraise them, but will also be responsible for post sanction monitoring, she said adding that they will be responsible end-to-end.
The quality control of the loan given to the SMEs will be done by the SME credit cell. Besides, the bank has also formed an off-site inspection team, which will do an online audit of the sanctions on an almost real-time basis so as to ensure that the loan is not manipulated, she added.
The chairman further said that the sanction terms and the proposals will be uploaded and off-site inspection team will audit it and will come back if they see any lacunae in that.
Under the new model, the bank will not open new SME-focused branches but will convert few of its branches into pure SME branches.
She said that certain branches will be converted so that they become pure SME branches and other jobs that were being done there, those will get migrated to close by branches. (KNN/SD)
In an interview to PTI, SBI Chairperson Arundhati Bhattacharya said that, “Earlier, we had sourcing teams and branches for SMEs, and sanction was done after being appraised by the SME city credit cell, that is a factory concept. But we have found that there is a lack of ownership in such a business model, so, we are now getting dedicated SME branches that will only do SME advances."
Under the new model, the people who source the loans will not only appraise them, but will also be responsible for post sanction monitoring, she said adding that they will be responsible end-to-end.
The quality control of the loan given to the SMEs will be done by the SME credit cell. Besides, the bank has also formed an off-site inspection team, which will do an online audit of the sanctions on an almost real-time basis so as to ensure that the loan is not manipulated, she added.
The chairman further said that the sanction terms and the proposals will be uploaded and off-site inspection team will audit it and will come back if they see any lacunae in that.
Under the new model, the bank will not open new SME-focused branches but will convert few of its branches into pure SME branches.
She said that certain branches will be converted so that they become pure SME branches and other jobs that were being done there, those will get migrated to close by branches. (KNN/SD)
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