The Small Industries Development Bank of India (Sidbi) has received the approval of the department of financial service (DFS) to launch its loan syndication business for medium, small and medium enterprises (MSME). A syndicated loan is one that is provided by a group of lenders and is structured, arranged, and administered by one or more financial institutions. Deputy managing director of Sidbi NK Maini said the loan syndication business will be run from Sidbis office and through accredited consultants. Sidbi is also looking to rope in rating agencies for rating the MSMEs eeking loan syndication services. Consultants generally charge high fees for loan syndications. Our loan syndication charges would be at just around 2% of the loan amount, said Maini. He added that SIDBI is currently in the process of signing memorandum of understandings (MOUs) with commercial bank. Maini said that SIDBI is also expanding the mandate of its venture capital arm to include angel funding and growth capital financing. Also SIDBI is looking to make deeper inroad into services sector lending, which the bank feels is undertapped, by new mechanisms such as using intellectual property rights (IPR) as collaterals on loans.
Canara bags best gold financial institution award
Canara Bank on Monday said that has bagged the 2012 Special Award for Best Financial Institution-Gold given by the Federation of Karnataka Chambers of Commerce and Industry. The federation gives away the Export Excellence Awards annually. The bank said that the value of total export credit it disbursed reached Rs 15,427 crore in FY12.
Vijaya Bank opens 171 branches in villages
Vijaya Bank on Monday said that it has opened 171 ultra small branches (USBs) in villages across the country as part of its financial inclusion initiative. The Bangalore-headquartered bank inaugurated 100 USBs in Karnataka's Mandya district on Monday while 71 USBs were opened simultaneously across Maharashtra, Andhra Pradesh, Madhya Pradesh, Tamil Nadu, Kerala and West Bengal. The bank, which has so far opened a total of 191 USBs across India, said that it has provided banking services to all the 407 villages, with population of above 2000 people, that had been allotted to it.