Financial Daily from THE HINDU group of publications
Friday, Dec 30, 2005
Financial Daily from THE HINDU group of publications Friday, Dec 30, 2005 |
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Money & Banking
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Credit Market Industry & Economy - SSI Union Bank to focus on mid-size cos Our Bureau
Mumbai, Dec. 29 IN order to diversify its credit portfolio, Union Bank of India is planning to focus on the mid, or medium segment, separately from small and medium enterprises, said Mr Cherian Varghese, CMD. "This segment offers more growth potential and employment generation. With increased focus, this segment could grow at approximately 35 per cent," he said. The mid-segment includes borrowers with investment of Rs 1 crore to Rs 10 crore in plant and machinery and Rs 5-25 crore of credit requirement. The bank will encourage these companies to get themselves rated by agencies such as Crisil or SMERA, which would also enable them to get credit at lower rates. A mid-size company with highest rating would get 0.5 per cent discount, while that with second highest rating would get 0.25 per cent off. The bank has identified 90 branches throughout the country for this service. The SME portfolio of Union Bank is now over Rs 6,000 crore, of the total advances of Rs 47,000 crore. The bank is also trying to replace short-term loans with more durable higher yielding loans in order to reduce the pressure on interest margins, he said. The bank is also introducing an in-house management programme for its Scale I to IV officers by January 2006
More Stories on : Credit Market | SSI
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