Describing small and medium enterprises as vital for transformation of economy and generation of employment, Ajai Kumar, Chairman and Managing Director, Corporation Bank, said his bank is placing emphasis on offering finance to this segment.
Speaking on the sidelines of an MSME (micro, small and medium enterprises) conclave, organised by Assocham and Kanara Chamber of Commerce and Industry here on Thursday, he said Corporation Bank had opened a branch for financing innovative start-up SMEs, called ‘small B’ branch, in Bangalore in mid-October.
This initiative has been taken up along with SIDBI (Small Industries Development Bank of India).
Apart from financing innovative start-up SMEs, no other business is done in that branch. He hoped that the bank will be able to showcase some success stories with this initiative in the days to come.
Ramamurthy, General Manager of the bank, said the branch offers up to Rs 1 crore of collateral-free finance. As of now, the bank has financed around four innovative start-up SMEs.
The bank has opened 15 SME loan centres in different locations in the country in the past five months. These branches, he said, have generated a business of around Rs 1,650 crore during this period.
Ajai Kumar hoped that these branches would help generate around Rs 5,000-crore business during the fiscal. The 16th SME loan centre will be opened in Jaipur on December 4.