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Our Bureau

Hyderabad , Nov. 28

In its efforts to ensure speedy flow of credit to industrial customers, the Andhra Pradesh State Financial Corporation (APSFC) has entered into a memorandum of understanding (MoU) with Canara Bank today.

Sanction of term loans up to Rs 5 crores by the APSFC would now be possible. Canara Bank will assist in larger term loan sanction in projects with requirement of more than Rs 5 crore, as per the MoU.

Bigger projects would be funded by the APSFC and Canara Bank on a consortium basis. APSFC has forged similar strategic alliances with the Bank of India, State Bank of Hyderabad, Andhra Bank and Central Bank of India.

In addition to speedy flow of credit, easy facility of working capital to all the existing industrialists and new entrepreneurs in the State would be facilitated.

Through the alliance, the industrial customers will have the benefit of joint appraisal for both term loan and working capital finance under a single-window concept, ensuring speedy, flexible, timely and adequate flow of credit, a press release from the SFC said.

The SFC with a target of Rs 650 crore sanctions this year and Canara Bank with Rs 2,00,000 crore annual business, coming together would facilitate close monitoring of the assisted units, exchange of information on market dynamics and right decision making, thus helping the industrial customers.

Mr J. Rambabu, Chairman of APSFC, said the two would offer better services and finances to industrial customers of the State. Mr S.B.R. Babuji, General Manager, Canara Bank, said the MoU would mutually benefit both organisations in further financing the SME sector.

The SFCwas also the first to enter into a MoU with SIDBI. It has also forged agreements with IFFCO-Tokio and LIC of India to provide insurance services to industrial customers, a press release from the Corporation said.

More Stories on : Alliances & Joint Ventures | Public Sector Banks | Andhra Pradesh

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