| Initially, this arrangement will be rolled out to finance SMEs in Andhra Pradesh, covering all branches of APSFC. |
| Addressing the media here on Thursday, M Gopalakrishna, chairman of APSFC, said, "APSFC provides term loans to enterprises. With this collaboration, working capital requirements of our customers will also be met." |
| APSFC will finance the entire amount of term loan up to Rs 5 crore. In case of bigger projects, there will be sharing of finance requirements with either or both the banks. In such a case, APSFC's share will not exceed Rs 20 crore. |
| "This collaboration, therefore, will ensure larger loans, better services and faster delivery of working capital. Clients will have the option to take financial support from Andhra Bank or State Bank of Hyderabad," he added. |
| APSFC has a network of 25 branch offices in 23 districts of the state and has sanctioned term loans of over Rs 5,513 crore as on March 31, 2005. |
| Amitabha Guha, managing director of State Bank of Hyderabad, said that the modalities with regard to quantum of financial assistance, margin requirement and interest rate were still being worked out. SBH has a network of 1,357 outlets in the country with credit exposure to SMEs being Rs 1,444.29 crore (of which Rs 832.36 crore pertains to Andhra Pradesh) as on September 30, 2005. |
| K Ramakrishnan, chairman and managing director of Andhra Bank, said that they were looking at similar collaborations across the country with other SFCs. |
| "Andhra Bank's advances under the SME sector stood at Rs 2,234 crore as on September 30, 2005. We are hopeful of accomplishing a target of Rs 2,518 crore by March 2006," he added. |
| Andhra Bank has targeted deposits of Rs 33,300 crore and advances of Rs 22,735 crore for the year ending March 2006. Its business stands at Rs 29,972 crore of deposits and Rs 20,052 crore of advances at present. |
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