The Mangalore-based Karnataka Bank wants to earmark one-fourth of its total credit to MSME sector.

According to Mr P. Jayarama Bhat, Managing Director and Chief Executive Officer, the bank is eyeing a business turnover of Rs 65,000 crore for 2012-13. This includes deposit of Rs 39,000 crore and advances of Rs 26,000 crore.

The bank has plans to take the exposure of 25 per cent of its total credit to micro, small and medium enterprises sector.

While sanctioning loans, priority is given for the proposals from the MSME sector. To achieve this, all the Central Loan Processing Centres are equipped with specialised officers to process their applications quickly. The credit sanctions are streamlined by reducing the turnaround time to less than four working days, he said. SME marketing officers are placed in select centres and regional offices.

Till May-end, the bank had 37,077 accounts of the sector. The bank had disbursed around Rs 4,758 crore to these accounts, which was 22.21 per cent of the total advances of the bank.  

A major share of total MSME accounts was garnered by micro enterprises. Of the 37,077 accounts, micro enterprises contributed 25,585 accounts. This was followed by small enterprises with 6,682 accounts and medium enterprises with 1,810 accounts.

In terms of disbursal, the small enterprises got a major share. The bank disbursed Rs 2,380 crore to small enterprises. This was followed by medium enterprises at Rs 1,275 crore and micro enterprises at Rs 1,104 crore.

(This article was published on July 3, 2012)
XThese are links to The Hindu Business Line suggested by Outbrain, which may or may not be relevant to the other content on this page. You can read Outbrain's privacy and cookie policy here.