PNB, DFC join hands to provide working capital to SMEs

Small and medium borrowers taking term-loans from the Delhi Financial Corporation(DFC) will now be eligible for working capital loans from Punjab National Bank(PNB).

According to an MoU inked by PNB Executive Director Nagesh Pydah and DFC CMD X K Mehto today, borrowers availing term loans from DFC will be eligible for availing working capital facilities from PNB.

Stressing the importance of small and medium enterprise in his business, Pydah said he expects the bank's SMEs credit disbursal to rise to 25 per cent of the total portfolio by the end of this fiscal from 16 per cent in 2008-09.

The bank had total credit disbursal of Rs 1,55,000 crore by the end of 2008-09, of which SMEs' shares was Rs 23,700 crore, he told reporters here.

"PNB has taken various initiatives to meet the credit requirements of MSME sector. Specialised MSME branches have been set up to focus on working capital as well as other credit requirements of MSME sector," Pydah said.

PNB Delhi Circle General Manager R K Dubey added that the tie-up with DFC would ensure credit delivery to the entrepreneurs in the national capital, especially in industrial areas like Bawana, Mayapuri, Patparganj, Okhla, Naraina, Narela, among others.

 "To meet the expectation of this priority sector segments, six MSME branches and two SME hubs have been set up in Delhi," Dubey added.

In the last financial year, the annualised growth of SME advance was 86 per cent in Delhi Circle.

DFC Chairman and Manging Director X K Mehto said both the institutions would extend financial assistance to the industrial units for acquiring fixed assets.

DFC is a state-run organisation to promote and develop small and medium enterprises in Delhi and Chandigarh.