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European financial services group Societe Generale has set its focus on Gujarat for corporate lending. The bank sees 100 per cent growth in its loan portfolio in Gujarat next year against about 80 per cent growth estimates nationally.
Societe Generale had set up its Gujarat operations a year back and has so far achieved a loan portfolio of $100 million (Rs 600 crore). The bank has been lending short-term finance to mid and large corporate groups in Gujarat, especially in Sanand and around Ahmedabad.
Overall loan portfolio
The bank’s overall loan portfolio in India stands at around Rs 6,000 crore.
“In the first year itself, we have achieved $100 million of the loan portfolio from our Sanand office. We plan to double this portfolio in the next year. On India level, our loan portfolio is likely to grow by 80 per cent to about Rs 10,000 crore next year,” Marc-Emmanuel Vives, Chief Executive & Group Chief Country Officer, Societe Generale, said.
According to Vives, the growth in loan portfolio will come mainly from auto component companies, energy, food processing and textiles. The bank provides offshore long-term finance, forex finance and domestic funding for short-term requirements.
Financial inclusion
As a part of its corporate social responsibility (CSR) programme, the bank has initiated financial inclusion programme in a small village Garodia with a population of 1,600 near Sanand. Soon, it plans to begin the programme in Manipur village nearby.
The programme is aimed at delivering a range of financial services to the underprivileged by offering them affordable financial products and services. The bank would employ business correspondents to bring more people under the banking net. So far, it has achieved 120 accounts from the village, and it aims to open around 250 accounts at each of the villages.
The bank also plans to offer more banking products, including recurring and term deposit facilities at a later stage. Currently, it has three branches in India each at Mumbai, Delhi and Sanand. A few more are likely to come up soon at Chennai, Bangalore, Hyderabad and Pune.
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