State Bank of India has planned to convert some of its branches into pure SME branches. With opening of more number of SME branches the bank is planning to focus over the SME segment all over the country.
The bank will have some branches that will completely deal with the SME activities only. Bank is noticing that the number of defaults was increasing especially n case of the large corporate. The bank's SME advances declined marginally to Rs 1,73,010 crore in the June quarter from Rs 1,75,407 crore a year ago.
The CMD of the bank reported that under the new model the people who source the loans will not only appraise them, but will also be responsible for post sanction monitoring. Since the defaults in the loans are increasing so the bank decided to come up with this measure. Some of the branches of the bank will be converted to SME branches dealing with all SME activities only and other activities will be shifted to other near branches.