Despite the global downturn, the Bengal circle of State Bank of India (SBI) has set a target of Rs 2600 crore of disbursals to small and medium sector enterprises (SMEs) this financial year, a growth of 30 per cent over last year.
In the Bengal circle, SBI had advanced Rs 8270 crore to the SME sector as on October 31, 2008, up from Rs 7200 crore achieved in the corresponding period last year.
According to Jayanta K Sinha, chief general manger of SBI - Bengal Circle, the bank has already disbursed Rs 1,000 crore for SMEs this year, and is confident of disbursing the remaining Rs 1600 crore by March 2009.
"We will continue to focus on lending to the small and medium enterprises as it has been our priority and there has been no slowdown in lending to this sector,” Sinha said.
SBI is ready to support the inventory levels and is prepared to increase the working capital if required, added Sinha.
According to Sinha, the government may come up with refinance window options against some security as part of its package for helping various sectors during this financial crunch.
More From This Section
The lending towards this sector in Bengal has been growing at 30 per cent year on year and the bank plans to achieve a target rate of close to 36 per cent this financial year.
At a national level, advances towards the SME sector has been to the tune of Rs 1,93,000 crore till October, 2008, up from Rs 1,82,000 crore in March 2008, registering a growth of about 47 per cent from September 2007 to October 2008.
According to Sinha, sectors like textile and garments manufacturing, chemicals, auto and ancilliary units, capital goods chain and the jewellery sectors are the biggest customers in the SME segment in the region.