The Hindu Business Line : PSBs' credit exposure to SMEs on the rise

Public sector banks (PSB) are getting more aggressive on the small and medium enterprises (SME) credit front if one went by the credit growth to this sector during fiscal 2005-06.

Official sources said that SME credit (outstanding) of PSBs grew 28.15 per cent to Rs 1,53,489 crore as on March 31, 2006 from a level of Rs 1,19,768 crore as on March 31 last year.

This performance is against the 20 per cent year-on-year growth target set last year. Among the PSBs, State Bank of India has the largest exposure to the SME sector at Rs 42,263 crore as on March 31, followed by Bank of India at Rs 17,675 crore, Canara Bank at Rs 12,422 crore and Punjab National Bank at Rs 11,689 crore.

State Bank of Travancore's SME credit exposure grew 71.20 per cent during 2005-06 to lRs 2,431 crore as on March 31. The other banks that recorded robust growth in SME credit include Indian Bank (39.90 per cent to Rs 4,358 crore), State Bank of India (37.38 per cent), Dena Bank (35.60 per cent), Punjab & Sind bank (34.73 per cent), United Bank of India (34.74 per cent) and Bank of Baroda (30.01 per cent).