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Wednesday, August 29, 2012

IDBI Bank ties up with SME rating agency

IDBI Bank Ltd has entered into a Memorandum of Understanding (MoU) with SME Rating Agency of India Ltd (SMERA) to evaluate its existing as well as potential MSME (Micro, Small and Medium Enterprise) clients.

“The rating will make it easier for the bank to get information and expedite the credit decision in lending to the prospective MSME customers…. The customers will get concessions on the rate of interest if their rating is higher,” said S. K.V. Srinivasan, Executive Director, IDBI Bank.

The public sector lender already has tie-ups with rating agencies such as CARE and Crisil to rate its prospective MSME clients.

IDBI Bank’s outstanding MSME lending stood at Rs 17,000 crore as on March 31, 2012, against Rs 11,000 crore in FY11.

The net non performing assets (NPAs) for the segment (MSME) increased to 2.29 per cent in FY12 as compared with 1.83 per cent in FY11.

IDBI Bank is keen on expanding its lending to the MSME sector considering it as a key driver of the Indian economy in terms of contribution to GDP, employment and exports,” said D. C. Jain, Chief General Manager, MSME Business, IDBI Bank.


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