According to a recent press report Oriental Bank of Commerce (OBC) has planned to achieve a growth rate of 30 per cent in value terms during the current fiscal its small and medium enterprises (SME) portfolio. The growth in advances to the small and medium enterprises segment in the year 2009-10 was to the tune of about 40 per cent. This is apart from the income generated from Retail loans like Home loan etc.
Mr. Nagesh Pydah, Chairman and Managing Director of the bank told that the overall loan exposure to small and medium enterprises (SME) currently stood at Rs 17,000 crore. The bank provides Loan upto Rs 10 crore for companies in this segment.
Earlier he also spoke about the increase in lending to small and medium enterprises (SMEs) in an addressing an interactive session, organized by the council for Small and Medium Enterprises (SMEs) where he mentioned that the bank has decided to increase the lending to SMEs with the idea of boosting the manufacturing growth in the country. He also mentioned that SME sector has possibilities of exponential growth.
He added saying that SMEs needed special encouragement regarding their contribution towards the economic growth, exports and job creation. Mr. Pydah highlighted that the SME sector was characterised by entrepreneurs who were cash-rich but had low affirmed income.