State Bank of Patiala (SBOP) on Wednesday said it is eyeing 20 percent growth in its total business, with a focus on retail, MSME sectors and has planned to open 60 new branches in current fiscal.
State Bank of Patiala (SBOP) on Wednesday said it is eyeing 20 percent growth in its total business, with a focus on retail, MSME sectors and has planned to open 60 new branches in current fiscal.
"We are expecting 20 percent growth in our total business in this fiscal," SBOP Managing Director A K Gupta told reporters here on the sidelines of CII conference on Micro, Small and Medium Enterprises (MSME).
Asked about financing to MSME sector, Gupta said the bank has an exposure of Rs 10,000 crore towards MSME and plans to raise it by Rs 2,000 crore in 2012-13.
"We have recently reduced the rate of interest for MSME by 2 percent and it is now available at 10.75 to 12 percent as per rating of the unit. Moreover, bank has decided to bear the guarantee and annual fee in case of Credit Guarantee Fund Scheme for collateral free financing upto Rs 50 lakh to MSME to encourage small and medium units to get more finance," he said.
Asked about the MSME sector complaining of not getting adequate financing from banks, the SBOP MD attributed it to lack of credit information about MSME.
"Credit information about MSME is not easily available and also we do not get track record of (performance of) MSME. These are the areas where we find difficulty. There are also doubts about professional governance and succession plans of the units," Gupta said.
Though he said the recovery in MSME is normal, yet the bank is seeing some stress because of poor economic conditions.
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