IDBI Bank eyes 15-20% growth in loans to mid-size firms

IDBI Bank plans to increase its lending to mid-size companies by 15 to 20 per cent annually in the medium term to grab higher business share and support bottom line.

There is robust demand for funds from mid-size companies (with a turnover of Rs 100 crore to 500 crore). They also provided better margins, as against large companies, who had more options to raise funds, IDBI Bank Executive Director Vinay Kumar said.

At the end of December 2010, the bank’s outstanding loan portfolio for the mid-size segment was at Rs 30,000 crore. It was lending to intermediaries and real estate companies on selective basis, which were part of the segment, he said. It has also begun to provide multi currency remittance facility for making payments in miscellaneous currencies. With this facility, its customers can make remittances in more than 125 currencies across the world.

“The facility offers absolute transparency to the customer in terms of exchange rate of the exotic currency and insulates against subsequent volatility,” he said.

Source: Business Standard