Date:24/05/2006 URL: http://www.thehindu.com/2006/05/24/stories/2006052403392100.htm

Business

SIDBI disbursed Rs. 278 cr. in 2005-06

Staff Reporter

Good response to credit guarantee scheme

KOCHI: Small Industries Development Bank of India (SIDBI), Kochi, registered growth in all the segments of its activities in the State during the last financial year even as it reversed the trend of targeting export-oriented units and developed alternative business and revenue streams.

M.V. Babu and K. Sathiayanandan, both deputy general managers, SIDBI, said here that the Kochi branch sanctioned Rs.320.59 crores against a target of Rs.277.46 crores during the last financial year.

Disbursals stood at Rs.278.50 crores whereas the target was Rs.234.72 crores. Outstandings amounted to Rs.586.93 crores while recovery target for NPA was Rs.5.41 crores for the period under review.

The number of new retail accounts added during the last financial year was 18 as compared to 12 during 2004-05. The average loan size under the direct credit section for the year under review was Rs.71 lakhs. The bank was also able to add an account under the infrastructure scheme during the last year.

The SIDBI officials said that there had been no addition to the NPA during the last financial year and that seven NPA cases pertaining to the 1998-2001 period were settled.

They added that the bill discounting facility offered by the bank had garnered a positive response in Kerala. The popularity of the facility was evident from the fact that Rs.100 crores had been paid during the last financial year. The amount paid through the bill-discounting scheme during 2004-05 was between Rs.4 crores and Rs.5 crores.

Another scheme offered by the SIDBI under the National Equity Fund helps entrepreneurs launch their venture with just 10 per cent of the capital required. SIDBI offers 25 per cent and the rest comes through bank loans. The scheme has been operated through institutions such as the State Finance Corporations.

The credit guarantee scheme offered by the bank too has evoked positive response, the SIDBI officials said.