DCB Bank To Offer More Loans to SMEs | SupportBiz

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DCB Bank To Offer More Loans to SMEs

 
Tags: SME lending
The current developments are in relation to the bank's strategy to double the balance sheet in the next 36-42 months.

Chennai, January 23: The new generation private sector lander, DCB Bank has decided to build a strong thrust on lending to Small and Medium Enterprises (SMEs) and self-employed over the next few years. In its efforts to support SMEs by providing more lending opportunities, the bank now looks to expand its network and range of its customized products.

“We intend to stick to SMEs and self-employed over the next 2-3 years. While the current year may see a flat growth in our SME portfolio due to present economic situation, we expect the segment to grow by at least 20 per cent from next fiscal,” Murali M Natrajan, Managing Director & CEO, DCB Bank, was quoted as saying to The Hindu.

DCB Bank, earlier known as Development Credit Bank, now feels safe to deal with SMEs as it claims to have earned some knowledge in SME lending and has readjusted its lending structure. “Between 2009 and 2012, we grew rapidly in SME segment. But we realised some risks and relooked our strategy. Our maximum loan amount has been reduced to Rs.3 crore now from Rs.7 crore earlier. Also, we work with SMEs that exhibit more business experience,” the CEO said.

The current developments are in relation to the bank's strategy to double the balance sheet in the next 36-42 months. It's three major areas of focus are to systematically expand branches and people, focus more on SME and self-employed and more thrust on mortgages.