Corporation Bank aims to increase its portfolio under medium, small and micro enterprises (MSME) to Rs 18,300 crore in 2012-13 fromRs 14,542 crore at the end of March 2012.This is 14 per cent of the projected net bank credit of Rs 1.27 lakh crore.
In order to facilitate lending to these enterprises, the bank decided to open eight loan centres across the country. These centres would be located in Bangalore, Chennai, Coimbatore, Hyderabad, Pune, Mumbai, Vadodara and Delhi.
Of the projected portfolio of Rs 18,300 crore for the MSME sector, micro and small enterprises would contribute around Rs 17,000 crore. This was Rs 13,752 crore in 2011-12. The bank has drawn up appropriate strategies for increasing credit to the MSME sector, and has specialised loan schemes designed to cater to its specific requirements.
The MSME loan centres will have a team of relationship managers, and an exclusive central credit processing mechanism. The new centres would make effective use of technology to process proposals quickly and make banking finance available at an attractive rate.
Total priority sector lending grew around Rs 6,000 crore in 2011-12. Such lending increased from Rs 24,000 crore in 2010-11 to Rs 30,000 crore in 2011-12.