HDFC Bank launches e-banking platform for SMEs

SM@Bank would allow clients access full bouquet of services instantly on 24x7 basis over personal computers or mobile phones

HDFC Bank today launched SM@Bank, touted as India's full fledged banking service for small and medium enterprises (SME). The new entity would allow clients access full bouquet of services instantly on 24x7 basis over personal computers or mobile phones.

The existing brick-and-mortar service format for the SMEs would coexist with SM@Bank and it would be the sole discretion of customers to choose between the two formats, HDFC Bank Group Head (Business Banking) Aseem Dhru told Business Standard over a video-conference call.

He informed HDFC Bank's SME loan portfolio was about Rs 70,000 crore, which corresponded to roughly 7% of the consolidated SME banking space in India.

Replying to another question, Dhru noted the prevailing environment was enabling the entrepreneurial space in the country and HDFC Bank wanted to make it easier and more convenient for the SMEs get institutional finance.

The SM@Bank format does away with the need to call relationship manager or visit a branch, while offering a secure environment for banking. It would be available for the existing customers also.

There are 36 million SMEs in India contributing 8% and 45% to the country's Gross Domestic Product (GDP) and manufacturing output respectively. While the sector employs 80 million people, it accounts for India's 40% of exports.