SBI Delhi circle expects over 15 per cent growth in SME loans this fiscal
NEW DELHI: With focus on SMEs, SBI Delhi circle is eying loan growth in excess of 15 per cent for the sector which is a very crucial segment of the economy and thrust area of the government, a senior bank official has said.
The circle, the biggest in the SBI family in terms of business mix, 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 per cent increase during the current fiscal. We hope to close the financial year with Rs 23,000-24,000 crore asset book,” SBI Delhi circle Chief General Manager Vijuy Ronjan said.
“It would be our endeavour bring at least 1,400 new micro, small and medium enterprises (MSMEs) customers in our fold during the current financial year beside 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 this would enhance the MSME portfolio.
SME advances as the proportion of total advances are about 27 per cent, he said.
Total advances of about Rs 72,000 while deposits were Rs 2.88 lakh crore at the end of March 2019.
Business mix (aggregate of total deposit and advances) was about Rs 3.60 lakh crore, which is more than many private sectors and some small public sector banks.
With regard to the retail side, Ronjan said, the focus would continue towards housing, auto and education loan.
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 added.
As part of the prudent banking, he said, risk mitigation, recovery and putting check on slippages will continue vigorously.