State Bank of India's subsidiary, State Bank of Hyderabad will be increasing its lending to micro, small and medium enterprise by next year.
Mr. Bhagavantha Rao, Managing Director, State Bank of Hyderabad said, "We are set to declare 2013-14 as MSME year with a target to achieve 60 per cent growth in this portfolio".
State Bank of Hyderabad as of now have Rs 6000 crore under MSME portfolio and the bank is process to identify new clusters for lending in this sector.
The SBH Chief said, "The reasons behind renewed focus on MSMEs are viability, increasing focus of the Government on the sector and potential for employment generation". SBH Chief also added that there was also saturation in the agricultural sector.
Mr. Rao said, "New projects are down to a trickle and existing credit limit have touched almost zero. I expect the next quarter also to witness a similar trend." Credit off-take in the corporate sector is still muted.
Around 10 to 12 per cent corporate clients also preferred restructuring of loan accounts, Mr. Rao said.
SBH will recruit 1,000 probationary officers soon. "We have initiated the process as State Bank of India will conduct the recruitment for us," he said.