Union Bank to lend Rs800cr to Gujarat SMEs

Union Bank of India is all set to lend Rs 800 crore to small scale industries (SSIs) and small and medium entreprises (SMEs) in Gujarat. Last year the bank achieved the target of Rs 500 crore.

"This year our target has increased from Rs 500 crore to
Rs 800 crore for SMEs and SSIs in Gujarat wherein we will focus the companies that are into manufacturing," T K Sharma, general manager of Union Bank of India, said.
 
The bank has already signed an MoU with SIDBI for joint lending to SMEs. "The arrangement will facilitate identification and co-financing of SME clients by SIDBI and the bank in select industrial clusters of the state," Sharma said.

The bank has identified SSIs and SMEs as one of its thrust areas for growth in lending. "The bank's outstanding exposure of SMEs all across India in FY06 was Rs 834.20 crore and we are targeting a growth of 25% in the current year," Sharma said.

Talking of expansion plans in Gujarat, Sharma said: "For the year FY07 we have a plan to establish 10 ATMs and eight branches in Gujarat." 
 
The bank also plans to install a kiosk in Surat. "In our new branch at Surat which is yet to commence, we will install a kiosk which will be similar to ATM. This kiosk will collect cash as well as cheques round-the-clock," Sharma said.