Money & Banking

Oriental Bank eyes 30% growth in SME portfolio

| Updated on: Apr 24, 2011
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Oriental Bank of Commerce (OBC) expects its small and medium enterprises (SME) portfolio to grow by atleast 30 per cent in value terms during the current fiscal.

In 2009-10, growth in advances to this segment was to the tune of about 40 per cent.

OBC's overall loan exposure to SMEs currently stood at Rs 17,000 crore, its Chairman and Managing Director, Mr Nagesh Pydah, told reporters here. Earlier, addressing an interactive session, organised by the council for Small and Medium Enterprises (SMEs), Mr Pydah said that there was scope for exponential growth in the SME sector. On challenges for bankers, he said that this was largely in areas of information availability.

“There are many instances of information default, as the attitude of the SME sector is to give just some information (to bankers) as would satisfy immediate sporadic needs”.

Mr Pydah highlighted that the SME sector was characterised by entrepreneurs who were cash-rich but had low declared income.

Published on April 24, 2011

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