Karnataka bank has planned to allocate at least one fourth of its total credit to micro, small and medium enterprises (MSME). On this, the Managing Director and Chief Executive Officer of the bank, Mr. P. Jayarama Bhat said that the bank has aimed to do a total business of Rs 26,000 crore this fiscal, which includes deposits of Rs. 39000 crores and loans of Rs. 26,000 crores.
Out of the total loans, the bank plans to increase the share of loans advanced to MSME sector to 25 percent.
To achieve this, the bank will give priority to loan requests from MSMEs while disbursing loans. The Central loan processing centers of the bank has been provided with specialized officers who would process loans from MSME sectors quickly. SME marketing officers have also been placed at selected offices of the bank.
The Mangalore based bank has a total of 37,077 MSME sector accounts to which it disbursed about Rs. 4758 crore, accounting to 22.21 percent of the total credit advanced by the bank.
Out of the total MSME accounts of the bank, the micro enterprises account for 25,585 accounts, the small enterprises have 6,682 accounts and the medium enterprises have 1,810 accounts.
Out of the total loans sanctioned by the bank to the MSME sector, small enterprises have got the largest share at Rs 2,380 crore, followed by medium enterprises at Rs 1,275 crore and micro enterprises have got the least share at Rs 1,104 crore.