Corporation Bank is looking to reach Rs 20,000 crore loans to small and medium enterprises (SMEs) by March 2013.
Recently, the public sector bank launched a credit scheme that charges 11.10 per cent (from 11.60 per cent) on loans up to Rs 1 crore to the SME sector. This is to encourage SME lending and fulfil the 40 per cent priority sector lending target.
“SMEs are covered under priority sector lending and direct lending, and this scheme will help us increase our effort to achieve the target mandated by the Reserve Bank of India. In addition, our risks are also spread in this segment,” said B. B. Tejappa, Mumbai Circle General Manager, Corporation Bank. As on September 2012, the outstanding loan by the bank to the SME segment stood at Rs 15,784 crore.
Currently, the SME segment contributes to about 15 per cent of the total credit. In its festival offer, the bank is also giving an additional 25 percentage point discount to women entrepreneurs along with 50 per cent waiver in processing fees.
The scheme, which was launched from October 20, will last till January 31.
beena.parmar@thehindu.co.in