HYDERABAD: Andhra Bank, one of the leading public sector banks, has decided to convert 13 of its specialised SSI branches (10 in Andhra Pradesh and three outside the State) into Small and Medium Enterprises (SME) branches.

The bank has identified three branches - Autonagar (Vijayawada zone), Balanagar (Hyderabad zone) and Anuparapalayam (Chennai zone) - for focussed lending to SMEs in fan, pharma, auto and hosiery clusters.

Andhra Bank has entered into a strategic alliance with the Small Industries Development Bank of India (SIDBI) on Tuesday.

The CMDs, K. Ramakrishnan (Andhra Bank) and N. Balasubramanian (SIDBI), signed a memorandum of understanding that paves way for taking up joint financing at SME industrial centres at Hyderabad, Chittoor, Vijayawada and other places in the first phase.

Targets

Mr. Ramakrishnan said though the bank targeted a level of Rs. 2,127 crores for SME sector with 20 per cent growth, it was aiming to achieving Rs. 2,520 crores by the end of the current fiscal, posting a robust growth of 42 per cent.

The bank's advances under the SME sector during the first quarter totalled Rs. 1,863 crores (Rs.1,313 crores for SSI and Rs. 550 crores for medium sector) with a 20.35 per cent annualised growth.

In addition to the two clusters in Hyderabad for pharma and drugs, 14 clusters in the State were identified for taking up focussed lending with an exposure of Rs. 45 crores.

Facilities

Mr. Balasubramanian said SIDBI was closely working with commercial banks and developed a technology-based product for improving the time of availability of credit to entrepreneurs. One more facility for the entrepreneurs was the bank's understanding with lead banks, like Bank of India, for provision of credit at 9.5 per cent interest.

Concessions

Explaining the concessions offered to entrepreneurs, he said the bank was working to serve as a one-stop shop for making credit available.

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