Financial Daily from THE HINDU group of publications
Thursday, Feb 09, 2006
Financial Daily from THE HINDU group of publications Thursday, Feb 09, 2006 |
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Money & Banking
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Credit Market Industry & Economy - SSI Citi eyes 20 pc growth in SME business Our Bureau
Mr N. Balasubramanian, Chairman, SMERA and Mr Abhijit Sen, CFO, Citigroup India & Director, Citicorp Finance (India) Ltd, signing an MoU in Mumbai on Wednesday. - - Shashi Ashiwal
Mumbai , Feb. 8 THE SME Rating Agency of India (SMERA) is helping small and medium enterprises receive loans at a discounted interest rate. Banks that are offering concessions to the SME segment based on SMERA's ratings include Bank of India, Andhra Bank and Union Bank of India. Mr Rajesh Dubey, CEO, SMERA, said the concession could be in the range of 0.25 to 1.5 per cent. However, in a recent case, a company received a concession of 2.5 per cent, where the interest rate was reduced from 11.75 per cent to 9.25 per cent, said Mr Dubey, at the signing of an MoU with Citicorp Finance (India) Ltd. Citicorp Finance (India) Ltd has picked up a 5-per cent stake in SMERA. It said it would collaborate with SMERA to introduce global best practices in financing for SME businesses in India. Mr Abhijit Sen, CFO, Citigroup India, said insufficient credit information on SMEs constrains a judicious analysis by lending institutions. The SME sector is also important for fulfilling the priority lending requirements of banks, he said. Citigroup's current portfolio with respect to the SME business is about Rs 4,500 crore and is targeting a growth of 20 per cent annually. Mr N. Balasubramanian, Chairman and MD, SIDBI, said SMERA would expand beyond India and look at markets in South-East Asia.
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