The Hindu Business Line : Oriental Bank to focus on SMEs in eastern region

Kolkata, Nov.28 Oriental Bank of Commerce (OBC) in eastern region has identified small and medium enterprises in infrastructure, machinery manufacturing, plastics and paper as thrust areas for purpose of advances. In the lower end, micro-credit through self help groups will receive priority.

Giving this information to Business Line here on Wednesday, Mr R M Sharma, General Manager, OBC, Eastern Region, said, “We already have a good deal of exposure in steel, jute and tea and would therefore like to balance our portfolio. Besides, in eastern region, the small and medium enterprises appear to be holding out bigger promises than the larger ones.”

Total advances

As on September 30, 2007, OBC’s total advances in eastern region to SMEs amounted to Rs 512 crore as compared to Rs 417 crore as on March 31, 2007. The target for the the year 2007-08 was Rs 510 crore. Similarly, the total advances to SSI units during the period jumped from Rs 199 crore to Rs 287 crore against the target of Rs 255 crore for the year. “We’ve already exceeded the targets set for the whole year”, Mr Sharma said.

The mobilisation of low-cost deposits was also being given top priority. Currently, the share of current and savings deposits in the bank’s total deposits in the region was around 25 per cent, and is proposed to be stepped up to 40 per cent by March 2008. “We’re confident of achieving at least 35/ 36 per cent despite odds”, he said. “The campaigns launched in this regard in October have yielded results and are therefore being continued.”

Need more branches

One major problem, he pointed was the limited branch network. The bank’s eastern region network has a total of 45 branches including 39 in West Bengal, four in Assam and two in Sikkim. “We need more branches to mobilise low cost deposits”, he said adding that the Reserve Bank of India’s authorisation had been received to open four more branches by March 2008.

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