| The bank is looking forward to introduce the balance-sheet lending particularly to the small scale industries. |
| "In the coming years, the SME sector, particularly the small scale industries would be the prime focus area for HSBC," said Walter Pereira, associate vice president, business development, SME, Eastern India. The balance sheet performance of the particular unit would determine the eligibility for credit against a nominal security, he added. |
| Currently the bank offers factoring services to the SME sector. While speaking to the BS on the sidelines of seminar organised by the Federation of Indian Export Organisations (FEIO), explained, "Our factoring services offers a comprehensive receivables and payables management solution which includes transaction financing, credit protection, sales ledger administration and payment collection." |
| HSBC has already introduced a similar balance sheet lending for the MMEs from last month with a upper cap of Rs 5crore, for the period of 90 days, against no objection certificate (NOC) from existing banks for realising for the specific debtor or creditor, as a security. |
| "The initial response of the corresponding loans to the MMEs are very encouraging, and hence we hope make an impact in the small scale industries as well, particularly when the sector is booming and have immense growth opportunities," Pereira added. |
| The bank has already disbursed Rs 20 crore in the last one month to the MMEs and is looking to disburse another Rs 50 crore by the end of this fiscal, a source at the bank revealed. |
| Regarding the credit business to the MMEs the bank has done a total business around Rs 500 crore and is looking at a business of Rs 600 crore by the end of this fiscal. |
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