Dena Bank gets aggressive for MSME lending in UP

The bank eyeing almost 25% increase in lending in current financial year to over Rs 400 cr

State-run Dena Bank has set aggressive target for micro, small and medium enterprises (MSME) lending in Uttar Pradesh during 2014-15.

Against MSME loan portfolio of nearly Rs 325 crore in the previous financial year, the bank is eyeing almost 25 per cent increase in lending during the current financial year to over Rs 400 crore.

Uttar Pradesh is believed to have the largest MSME base in India, estimated over three million, with the majority belonging to the micro space.

“We are focusing on industrial hubs of chikan, carpet, brassware and steel mills, among other industries, to reach out to prospective customers,” Dena Bank Chairman and Managing Director Ashwani Kumar told Business Standard here.

He said the bank would hold meetings with industrial associations and individual units, to ascertain their financing needs. A similar meeting was held last week in Lucknow with senior bank officials, customers and MSME clients. Meanwhile, the bank has also planned to open 25 new branches in Uttar Pradesh and Uttarakhand during 2015-16 to add to its current tally of 78 in the two states.

On the issue of non-performing assets, Kumar said such stress was being witnessed in large accounts, especially in steel and infrastructure industries.

The bank has largest presence in Gujarat and Maharashtra with 600 and 300 branches, respectively. It has opened a representative office in London also.

Under the Pradhan Mantri Jan Dhan Yojana, the bank has, so far, opened 1.9 million new accounts and issued 1.8 million RuPay cards.

On the proposed merger of public sector banks, Kumar said in the last bankers’ meet, the general contention was that banks were faced with challenges, including high NPAs, and as such merger plans could be put off for the time being.