Online edition of India's National Newspaper
Friday, Feb 27, 2009
ePaper | Mobile/PDA Version
Google



Andhra Pradesh
News: ePaper | Front Page | National | Tamil Nadu | Andhra Pradesh | Karnataka | Kerala | New Delhi | Other States | International | Opinion | Business | Sport | Miscellaneous | Engagements |
Advts:
Retail Plus | Classifieds | Jobs | Obituary |

Andhra Pradesh - Nellore Printer Friendly Page   Send this Article to a Friend

SIDBI to enhance loan amount

Rajulapudi Srinivas

Bank extends Rs. 200-crore loan to industrialists to come out of crisis

NELLORE: Putting a step ahead to save the industrialists from the continuing recession, Small Industries Development Bank of India (SIDBI) has decided to enhance the loan amount to its entrepreneurs, said its Southern Zone In-charge General Manager Namgial.

Already, the bank held meetings with the customers and disbursed loans to a tune of Rs. 200 crore in south zone (i.e. Kerala, Tamil Nadu, Andhra Padesh and Karnataka) to withstand the crisis, said Mr. Namgial.

Mr. Namgial, who was here to attend the bank’s 94th branch inauguration, told The Hindu that SIDBI took a decision to enhance 15 per cent of the total sanctioned loan amount to help entrepreneurs in the ongoing economic crisis.

As part of it, the bank gave communication to all customers, held discussions and extended loans as per their requirements.

Following the directions of the Reserve Bank of India, SIDBI is extending its support by rescheduling loans to entrepreneurs and will be liberal during recoveries in view of the global meltdown, said the South Zone chief.

Good performance

The south zone is in second position by extending loans worth Rs. 1,013 crore to about eight lakh medium enterprises followed by west zone in the country.

In micro credit financing, south zone is in top position by disbursing loans to a tune of Rs. 1,009 crore and about 300 new customers were given loans during the year 2008-09.

The business growth of SIDBI for the current financial year was about 35 per cent in the country and in south zone the growth was recorded at 44 per cent. The bank has set a target to give Rs 1,250 crore loan to entrepreneurs during 2008-09 (in the four States) and already loans worth Rs. 1,013 were disbursed.

Under Micro Credit Finance, the bank has exceeded the target by disbursing Rs. 1,022 crore loans as against the target of Rs. 1,000 crore.

As regards recoveries, SIDBI has made 99 percent recoveries and the Non-Performing Assets (NPAs) are only one percent, which was the lowest among all the banks.

In Andhra Pradesh, SIDBI has supported the AP State Financial Corporation by providing loans to a tune of Rs. 1,000 crore for supporting industrialists, said Mr. Namgial.

New schemes

Recently, SIDBI has made a line of credit with Japan International Corporation Agency (JICA) for extending loans to the industrialists who set up plants with energy saving equipment. The bank will provide loan at 10.5 per cent interest.

Besides, the bank has also introduced Risk Sharing Facility Scheme by extending term loan, equity or equity shares to the customers and loan up to Rs 1 crore under Credit Guarantee Scheme without any collateral guarantee.

About 8,000 units were covered under the scheme in the State, Mr. Namgial said.

Printer friendly page  
Send this article to Friends by E-Mail



Andhra Pradesh

News: ePaper | Front Page | National | Tamil Nadu | Andhra Pradesh | Karnataka | Kerala | New Delhi | Other States | International | Opinion | Business | Sport | Miscellaneous | Engagements |
Advts:
Retail Plus | Classifieds | Jobs | Obituary | Updates: Breaking News |


News Update



The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | Publications | eBooks | Images | Ergo | Home |

Copyright 2009, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu