SIDBI may achieve 21 pc y-o-y credit growth

Top Stories

»	Sensex, Nifty open 1 pc lower amid West Asia tensions, weak global cues
»	India clocks robust 7.7 pc GDP growth in 2025-26, Q4 growth at 7.8 pc
»	RBI keeps repo rate unchanged at 5.25 pc, maintains âNeutralâ stance
»	Crude oil prices fall over 1 pc as ceasefire hopes ease West Asia concerns
»	Forced labour import curbs: US proposes up to 12.5 pc tariff on 60 countries, including India

SME Times News Bureau | 11 Feb, 2012
The Small Industries Development Bank of India (SIDBI), which finances the Micro, Small and Medium Enterprise (MSME) sector, Friday said it might clock an year-on-year credit growth of 21 percent by this fiscal-end.

"We had targeted 20 percent year-on-year credit growth for this fiscal for MSME sector. We are working towards achieving this," SIDBI Executive Director N. Raman told reporters here on the sidelines of a programme organised by industry lobby CII in Kolkata.

Raman said in the financial year the bank might achieve the credit growth of 21 percent, lower than that of last fiscal.

"Last (fiscal) year we achieved more than 25 percent credit growthâ¦this year is slightly subduedâ¦ this year we might achieve the credit growth of 20 percent to 21 percent," he said.

"At end of December (third quarter), we might not come to the 20 percent as yet. But the fourth quarter (Jan-Mar) is always very crucial for the banksâ¦ in this period a lot of business happens. We will ensure that at the end of the fiscal we meet the target."

Informing that loan re-payment for the MSME sector was "certainly an issue" this fiscal and the bank was looking into the possibility of loan restructuring, Raman said, "Yes, for the MSME sector per se the amount of NPA is larger than that of the corporatesâ¦ this year for the sector loan re-payment is certainly an issue. We are looking into restructuring the loans where it is possibleâ¦ it is an on-going process."

On the bank's current rate of non-performing assets (NPA), the executive director said its gross NPA stood around two percent.

"And net NPA is less than that. We will keep the NPA under control," he added.