State Bank of India is the harbinger of Banking in the NE Region. The first Branch of the Bank (in its earlier Avatar as Imperial Bank of India) was opened in Dibrugarh in the year 1923.
State bank of India today is a pioneer of Development Banking in the North East. Some parameters are as under:
(as on 31st March 2010)
- Shri R K Garg
• Number of Branches: 525
• No of employees: 9038
• Total deposits: 35387.74 crores
• Total advances: 13283.24 crores
• Total Business 48670.98 crores
• Net Profit: 1214.45 crores
• Advances to:
• Agl (Agricultural Loan): 1271.19 crores
• SSI (Small Scale Industris): 499.60 crores
• SBF (Small Business Finance): 899.34 crores
• Total priority sector advances: 4871.59 crores
• Market share: Deposit as on Sep 2009- 44%
Advance as on Sep 2009- 49.55%
You are the only Bank with such high penetration in the NE. Why do you think other Banks are lagging behind?
Ideally it is for other Banks to respond. But, I think the reason could be that while we see ourselves as an agent for change and development and therefore, are present in inaccessible villages, others see NE as a business opportunity and are largely present in big towns and cities.
What plans do you have for MSMES in the North East?
Our near term plans and commitment for different states of North East are given in the table:
We are planning for an annual growth of 25 pre cent in the next year and are committed to maintain the CAGR of 25 pre cent in coming years.
What incentives does the bank provide to investors from outside NER?
People from outside the region bring the much needed entrepreneurial quality, expertise and capital to North East. The government encourage outside investors with open arms. Our attitude is also very positive and we extend all possible help and liberal finance to such investors.
Does SBI encourage the Credit Guarantee scheme by CGTMSE?
The answer is yes. In SBI, Operating Functionaries are instructed to use CGTMSE cover as an enabler, and are mandated not to insist on collateral security up to Rs 10 lacs and instead obtain CGTMSE cover. We finance deserving entrepreneurs up to `100 lacs without insisting on Collateral security and by obtaining CGTMSE cover.
How difficult it is for the Micro and small enterprises to secure a loan against medium enterprises which always take away the bigger pie?
I do not see as it micro and small versus medium enterprises. Medium enterprises, because of scale, need higher credit amount. They have to fulfill more stringent requirements to qualify for finance. Most of them have to satisfy internal Credit Risk Assessment standards to be eligible for finance. The bigger ones having credit requirements of `5 crores have to be rated by external agencies. Our approach to financing Micro and Small enterprises has been very liberal. As mentioned earlier, we are prepared to finance deserving MSE units up to `1 Crore without collateral security. Funds have never been a constraint to finance Micro and Small Enterprises.
We have set up MPSTs, to reach out to SME sector, SMECCCs/ RASMECC to centralize processing of MSME Sector. A commercial Branch has been set up at Guwahati to cater to larger MEs. RMMEs are in place to provide Relationship Banking to SME sector.
What does SBI offer to the aspiring entrepreneurs scared to take the first step?
Our Branches and Lead Bank offices act as MSME counseling centers for aspiring entrepreneurs. They are encouraged to set up micro enterprises where we give loans on easy terms, without collateral security. We have a scheme called SBI SMILE under which we give long term interest free loan up to `10 lakh to deserving and technically qualified and professional entrepreneurs who are not in a position to bring in their share of margin in the form of equity. We have specialized Branches, dedicated and empathic team to guide and help SME units.
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