BoB launches SME loan factory in Bangalore

Bank of Baroda (BoB) is aiming at a 150 per cent rise in its advances to the small and medium enterprises (SME) segment in Karnataka during the present fiscal. It plans to disburse Rs 300 crore as loans to SMEs in the state compared with Rs 120 crore disbursed in FY07.

According to MS Purnima Engineer, assistant general manager, BoB, the bank aims to achieve the higher target set for this fiscal through the exclusive SME Loan Factory launched by the bank here last week.

The new loan wing has been opened at the bank's Jayanagar branch, which will cater to both small and medium enterprises having a yearly turnover of up to Rs 100 crore.

On the very first day, the bank sanctioned loan proposals worth Rs 21 crore, she told reporters.

She said the bank plans to open seven more branches in Karnataka this year to take the number of branches to 53. The bank, to mark its centenary celebrations, also launched the centenary deposit scheme and super savings bank account.

Under the scheme, it will accept deposits with a tenor of two years at an interest rate of 9.75 per cent. Super savings bank account will also act like a fixed deposit if the customer maintains more than Rs 10,000 in the account.