BoB to step up MSME focus

Enthused by the Centre’s schemes for the MSME segment and the GST rollout, Bank of Baroda is planning to step up its focus on supply chain financing, whereby it will provide loans to MSMEs associated with large corporates based on the credit rating of the latter.

So, MSME suppliers as well as dealers doing business with large corporates will get loans at relatively lower interest rates, said a top official. Further, those supplying to the MSME suppliers too will be offered loans.

“Our bank will continue to expand the loan book on the retail side…. At the same time we would like to encash opportunities in the MSME segment,” said Ashok Kumar Garg, Executive Director.

“We will leverage supply chain financing to gain a large number of MSME customers,” Garg said.

He added that as part of the supply chain financing initiative, BoB had signed an MoU with online marketplace Amazon in September to finance sellers on the platform.

BoB’s MSME portfolio increased to ₹50,198 crore as of September-end 2017 from ₹48,057 crore as at September-end 2016.