SBI loans to mid-sized firms cross Rs 48,000 cr in January

Chennai, Feb 25 | Updated: Feb 26 2005, 06:03am hrs
State Bank of India (SBI) on Friday said its total outstanding loans to mid-sized corporates crossed Rs 48,000 crore last month and was growing at a rate of about Rs 1,250 crore per month.

Speaking to reporters on the sidelines of a seminar, organised by Ficci here, VK Gupta, chief general manager (mid-corporates), said the mid-corporate segment comprises about 25% share of SBIs total loan portfolio in the non-retail banking sector.

At the end of January this year, SBIs total outstanding loans to mid-corporate segment crossed Rs 48,000 crore, he said, adding that on an average, SBI has reported a growth of Rs 1,250 crore per month on its credit towards the mid- sized corporates from October last. Mr Gupta attributed the strong demand for funds from the mid-corporate sector to the current economic boom and the higher emphasis laid out by the SBI to tap this segment. Explaining the initiatives taken by the SBI to tap the mid-corporate segment, Mr Gupta said the bank has identified about 6,100 units under mid-corporate category. The mid-corporates, as per SBIs classification, are those which have a turnover between between Rs 25 crore to Rs 350 crore.

SBI was already dealing with 1,900 units. The remaining 4,200 business units are our target customers, he said, adding SBIs dedicated branches would tap these units for business purpo ses. SBIs initiative towards the mid-corporate segment began from its Mumbai centre on September 15. It was launched from its seven regional offices, including Chennai, Kolkata, Delhi, Bangalore and Ahmedabad in November last year. SBI has also identified 31 centres in the country, where there was a large proliferation of mid-corporate hubs. In Tamil Nadu alone, there are seven such centres, including Salem, Coimbatore, Tirupur, Madurai and Erode, Mr Gupta said.

SBI has 27 branches across the country which are exclusively dedicated to address the requirements of mid-sized corporates, he said. As per the initiative, the branches have been told to clear all the loan applications within two-three weeks. The delivery platforms have also been strengthened, whereby the chief operating officers were given enhanced powers on sanctioning the loans.