The Hindu Business Line : Canara Bank in pact with SIDBI

CANARA Bank has signed a memorandum of understanding (MoU) with the Small Industries Development Bank of India (SIDBI) for co-financing small-scale industries, service sector and for undertaking related infrastructure projects.

Canara Bank proposes to increase advances to SSIs by Rs 626 crore during the current fiscal, a growth of 16.21 per cent and take the outstanding credit to SSI to Rs 4,510 crore, said the bank's Chairman and Managing Director, Mr R.V. Shastri, in a release here.

Mr Shastri hoped the arrangement would help in accelerating flow of credit to the SSI segment. The arrangement would create synergies in identifying, evaluating and extending finance to upcoming units, he added.

As part of the arrangement, both institutions will entertain loan proposals for term loans as well as working capital. The co-financing arrangement would have the advantage of core competence of both the financial institutions and the branch network of Canara Bank, which would benefit the clients to access a variety of financial packages to suit their specific needs, the release said.

Mr V.K. Chopra, Chairman and Managing Director, SIDBI, said the tie-up with Canara Bank was part of the SIDBI's strategy to join hands with important banks in the country in co-financing and adding synergy to their operations.

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