The State Bank of India (SBI) intends to finance Indian films now that it has been made legal and the sector granted industry status.
In line with the provisions announced in the last Union budget, SBI is also considering special term-loans for small-scale units. Chief general manager S K Gupta, at a meeting organised by the Bengal National Chamber of Commerce and Industry said, "We are preparing a study-paper on the film industry and evaluating the possibility of financing films."
Transparency of operations in the industry will be the driving criteria for advances made to the sector. With institutions such as IDBI and private banks, namely IndusInd jumping into the foray, SBI would not like to lag behind, explained officials from the bank.
Nevertheless, Gupta expressed his concern about the future and profitability of Asansol-Durgapur region. He said, "The profitability of the region is linked with the performance of Indian Iron & Steel Company Ltd (Iisco), a BIFR company. If it is not brought back on the track, SBI branches in the region will continue to make losses." SBI may be forced to close down majority of its branches at the region, if things at Iisco do not improve.
Meanwhile, possibility of another round of fresh layoff cannot also be ruled out in view of the mismatch in employee profile more towards award staff(clerical) after the recent round of voluntary retirement scheme at SBI. However, Gupta declined to comment on it when asked.
Profitability of the bank also took a beating when the state government decided to transfer deposits made with SBI, that had a poor credit-deposit ratio, to co-operative banks.
Nevertheless, Gupta expects deposits at SBI's Bengal circle, that includes Bihar, Bengal, Orissa and the North East, to register a 25 per cent rise at Rs 20,000 crore. Advances, estimated at Rs 8000 crore, is also expected to grow in tandem with growth in deposits.
