Banks achieve 96% target in loans to MSME

Banks operating in the state have achieved up to 95.61 per cent of the targeted advances to the MSME (Micro, Small & Medium Enterprises) units till the end of December 2010.

Out of Rs 10613.60 crore earmarked for this sector in the current fiscal, the advances of all banks- PSU banks, private banks, cooperative banks and regional rural banks (RRBs) taken together stands at Rs 10147.41 crore till December last year.

The total advances by the PSU banks to this sector were Rs 7872.2 crore which means an achievement of 97 per cent of the targeted Rs 8102.49 crore.

The PSU banks, which have already overshot the target in terms of credit flow to the MSME sector, are Allahabad Bank (107 per cent), Bank of Maharashtra (637 per cent), Corporation Bank (142 per cent), Dena Bank (115 per cent), IDBI Bank (110 per cent), Indian Bank (149 per cent),. Oriental Bank of Commerce (116 per cent), Punjab & Sind Bank (193 per cent), State Bank of India (104 per cent) and State Bank of Travancore (195 per cent).

 

The PSU banks that are laggards in sanctioning loans to the MSME units are State Bank of Mysore, State Bank of Hyderabad and United Bank of India whose advances stand at 41 per cent, 51 per cent and 64 per cent respectively.

The private sector banks have advanced Rs 1007.92 crore till December-end, thereby achieving 109 per cent of the targeted Rs 925.39 crore. However, among the private banks, the achievement of banks like Federal Bank and Rajasthan Bank Ltd has been somewhat lacklustre as these two banks have achieved only 54 per cent and 57 per cent of the target respectively.

For the five RRBs functioning in the state- Baitarani Gramya Bank, Utkal Gramya Bank, Kalinga Gramya Bank, Neelachal Gramya Bank and Rushuikulya Bank, the achievement has been 76 per cent. Out of the targeted figure of Rs 1148.21 crore, the advances of these banks to the MSME sector stood at Rs 875.48 crore.

The Orissa State Cooperative Bank has achieved 86 per cent of the target while the achievement for the Orissa State Finance Corporation (OSFC) and Small Industries Bank of India (SIDBI) stood at 90 per cent and 93 per cent respectively.