The Hindu Business Line : Oriental Bank to focus on priority sector

Kolkata, July 13 Burdened by the poor record in priority sector lending in eastern region, Oriental Bank of Commerce (OBC) held here a meeting of all the 44 branch heads in the region covering West Bengal, Sikkim and Assam to firm up strategies as to how to increase the bank’s exposure to this sector.

“This is in line with the Union Government’s policy laying thrust on priority sector lending,” Mr R.M. Sharma, General Manager of OBC in eastern region, told Business Line. “The branch heads have been asked t o swing into action on completion of the current exercise on the proper classification of the priority sector by July 20”.

SSI Sector

OBC’s target for priority sector lending in eastern region for 2007-08 has been fixed at Rs 482 crore, up from Rs 380 crore in 2006-07.

Of this, the SSI sector would account for Rs 255 crore (Rs 188 crore), agriculture Rs 83 crore (Rs 70 crore) and retail credit covering housing and education loans Rs 40 crore (Rs 36 crore).

“We will also give a good deal of attention to lending to the SMEs such that the advances rise to Rs 510 crore in the current year from Rs 417 crore in 2006-07,” Mr Sharma said.

Since most of OBC’s branches in eastern region were located in urban and semi-urban areas, the bulk of the projected increase in the priority sector lending would be directed towards SSI and retail loans classified as priority sector lending, he added.

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