SBI mulls reduced interest rates for small, medium enterprises

SBI mulls reduced interest rates for small, medium enterprisesChennai, May 29 : India's largest government-owned lender, State Bank of India (SBI) plans to reduce its lending rates for small and medium enterprises (SMEs) from June onwards so as to win them back to its fold, said its chairman Tuesday.

Speaking to reporters here, SBI chairman Pratip Chaudhuri said: "The bank's current lending rates for the SME sector ranges between 12-17 percent. This will be brought down to 10.5 percent to 15.3 percent."

He was here to donate an ambulance van and medical equipments on behalf to SBI's Chennai Circle to the Paediatric Centre of Cancer Institute here.

According to SBI deputy managing director Sharad Sharma, the reduction in interest rates is expected to bring back the SME customers the bank had lost due to high lending rates.

Lending to SME accounts for around 14 percent of the bank's total advances of Rs. 80,000 crore.

According to Chaudhuri, SBI is hoping to bring down its net non performing assets (NPA) to 1.62 percent this fiscal from 1.8 percent and a separate Stressed Asset Management Group has been formed to focuss on stressed loans and recover them.

He said SBI is also asking its borrowers to look at restructuring of their loans before any default while planning to approach Moody's to review the bank's rating as its capital base has been strengthened.(IANS)


Check out More news from Telecom Sector :: Pharmaceutical Sector :: Auto Sector :: Infrastructure :: Real Estate

Popular Stories

Sufi legend Begum Yaman passes away at 52

New Delhi [India], Apr 28 : Famous sufi singer and... Read More

No farmer committed suicide over drought: TN Govt. to SC

New Delhi [India], Apr. 28 : In a development bound... Read More

Never took studies as 'burden', says JEE 2017 topper

Udaipur (Rajsthan) [India], Apr 28 : Kalpit Veerwal... Read More

Narada sting: ED files case against TMC leaders

New Delhi [India], Apr. 28 : After the Central... Read More

UP STF raids petrol pumps, eight caught using cheating chip

Lucknow (Uttar Pradesh), April 28 : The special... Read More

UP school issues bizarre diktat: Yogi haircut

Meerut (Uttar Pradesh) [India], Apr 28 : In a... Read More