Corporation Bank’s small and medium enterprises (SME) asset quality continues to be robust with gross NPA ratio at 1.66 per cent, said Ashwani Kumar, Executive Director, Corporation Bank.
Addressing reporters to announce the bank’s ‘SME festival loan bonanza’, Kumar said “Funding SMEs is a challenge. So far the bank has exposure to the tune of Rs 15,000 crore and we are managing it well.”
“The bank has set a target of lending Rs 5,300 crore to SMEs by March 2013. Though the target is steep, we hope to achieve it. In the last six months (April to September), we have sanctioned around Rs 2,000 crore, of which disbursal is Rs 1,400 crore,” he added.
The bank’s NPA ratio of large corporate/companies is at the same level at 1.66 per cent. “At present SME NPAs are manageable, but lending to large corporate like Kingfisher Airlines and Deccan Chronicle Holding is slipping,” he said.
To attract SMEs, during the period from October to January, the bank is offering interest rate concession of 0.50 per cent on all SME Credit Scheme; an additional interest rate concession of 0.25 per cent for women entrepreneurs, and 50 per cent concession on processing charges.
In Karnataka, the bank has Rs 245-crore exposure to SMEs spread across two Loan Centres — Bangalore and Mangalore.
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