SBI Delhi circle eyes 15 pc growth and 1,400 new MSME loan customers in FY20

With a focus on SMEs, SBI Delhi circle is eyeing loan growth in excess of 15 percent for the sector, a senior bank official said, adding that the circle wants to bring at least 1,400 new MSMEs in its fold this year.

The circle is the biggest in the SBI family in terms of business mix and has 67 branches dedicated to promote MSME sector.

"We had a base of around Rs 20,000 crore in SME segment as on March 2019 ,and we expect a 15 percent increase during the current fiscal. We hope to close the financial year with Rs 23,000 to 24,000 crore asset book," said Vijuy Ronjan, Chief General Manager, SBI Delhi circle.

"It would be our endeavour to bring at least 1,400 new MSMEs customers in our fold during the current financial year, besides the target given under Pradhan Mantri Mudra Yojana (PMMY)," he said.

In addition to this, SBI Delhi circle will also tap customers from the psbloansin59minutes portal, he said, adding that this would enhance the MSME portfolio.

According to him, SME advances as proportion of total advances is about 27 percent, and total advances were around Rs 72,000 while deposits were Rs 2.88 lakh crore at the end of March 2019.

The business mix, which is an aggregate of total deposits and advances, was about Rs 3.60 lakh crore, which is more than many private sector and some small public sector banks.

With regard to retail, Ronjan said that the focus would continue towards housing, auto, and education loans.

“Double digit loan growth in the segment will continue this fiscal as well and retail loan book size is expected to touch Rs 50,000 crore during the course of the year,” he said

In April this year, PAISALO Digital, a leading non-deposit-taking NBFC registered with the Reserve Bank of India (RBI), had signed a co-origination MSME loan agreement with State Bank of India (SBI).

The goal of this partnership is empowering the agriculture and MSME segment. Through this alliance, a platform will be introduced where the MSME loan ticket is designed at Rs 10,000 to Rs 2 lakh. PAISALO expects to disburse 200,000 MSME loan applications in FY20.

ALSO READ

PAISALO signs up with SBI to disburse 2 lakh MSME loans in FY20

ALSO READ

SBI and TReDS platform Invoicemart join hands to finance MSME loans