Small Industries Development Bank of India (SIDBI) is expecting a four-fold jump in its fee income in a period five years as it launches a number of service-oriented products that will help small businesses to raise funds.
Small Industries Development Bank of India (SIDBI) is expecting a four-fold jump in its fee income in a period five years as it launches a number of service-oriented products that will help small businesses to raise funds.
Sushil Muhnot, Chairman and MD, SIDBI, said, “We are expecting a four-fold jump in fee income in four to five years.” He was speaking at an event in Mumbai.
Muhnot added that this would be made possible primarily by a loan syndication service that SIDBI would launch soon and also earnings from the recently launched credit consultancy centres at SME clusters.
SIDBI’s fee income, which includes upfront and processing fees, and commission and brokerage, had stood at Rs 33.03 crore in the past fiscal, which was a growth of 25 per cent from Rs 26.30 crore in FY11, according to the bank’s annual report.
Muhnot also said as part of its micro small and medium enterprises development services initiative, SIDBI will soon start a loan facilitation service that will involve acting like an investment banker and help SMEs arrange finance from multiple banks if required.
Apart from that, SIDBI has also launched credit consultancy centres across 110 SME clusters to help small businesses with their documentation as they approach lenders to avail loans, according to him.
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