Bank of Baroda sets MSME lending target of Rs 75,000-cr

The bank had recently organised a costumer meet at Ahmedabad for MSME entrepreneurs to appraise benefits given by BoB to the sector

The Bank of Baroda (BoB) has set a lending target of Rs 75,000 crore towards micro, small and medium enterprises (MSME) for financial year 2015-16, a jump of 20% over previous year. Bank advances to MSME sector stood at Rs 62,000 crore in 2014-15.

"Last year was a bit lower as overall scenario was not good for the industries. But now with situation gradually changing, MSME sector is reviving. We hope to get more business from them," said S Sridharan, general manager, MSME banking, BoB.

The bank had recently organized a costumer meet at Ahmedabad for MSME entrepreneurs to appraise benefits given by BoB to the sector. The bank has planned to organize such informative meets at other places also in India.

Sridharan said, "As economy is changing and small industries have lead role in it, the bank has decided to set 20% higher target for MSME advances for current financial year. The bank is hopeful to achieve the set mark as people trust on us."

According to BoB, manufacturing sector is improving and will do well. Number of new projects and expansion activities going on in manufacturing sector require further funding. Activities in MSME sector has improved in Gujarat, Maharashtra and Uttar Pradesh. This enables the bank to realize its plans.

State-owned Bank of Baroda on Monday said its consolidated net profit for 2014-2015 declined by over 21 percent at Rs 3,911 crore against Rs 5,000 crore during 2013-14.

Even as profitability fell, consolidated net revenues during the period under review rose by 9.4 percent at Rs 50,364 crore against Rs 46,018 crore in 2013-14. However, total expenses increased by over 11 percent at Rs 39,151 crore in 2014-15 against Rs 35,134 crore in 2013-14.