AHMEDABAD: The uptakes for loans in the Micro Small and Medium Enterprises (MSMEs) in Gujarat have gone up for private sector-lender, HDFC Bank.

The bank’s loan book crossed Rs 15,000 crore at the end of the first quarter of financial year 2019-20. According to bank officials, the advances in the MSME sector have grown by 30% over the same period in 2018-19.

The growth trend in MSME advances has been more or less similar for banks across Gujarat. MSME advances stood at Rs 1.26 lakh crore in Gujarat in the quarter that ended on June 30, 2019, of the financial year 2019-20, growing by 20.7% against the same quarter last year, when MSME advances stood at Rs 1.04 lakh crore.

According to banking officials, majority of these advances have been diverted towards financing working capital needs of industries. “The key sectors to which the bank has given advances to include textile, paper packaging, metal, agriculture and food processing, ceramics, timber and industrial equipment, among others,” said Sumant Rampal, country head – business banking, HDFC Bank, talking to the media, during a press briefing on Thursday.

In the last 15 years in Gujarat, the bank has supported over 10,000 such enterprises across more than 150 cities and towns covering 31 districts. Earlier this year, the bank announced a major branch expansion across Gujarat.

“MSMEs are the backbone of the economy and are amongst the largest job creators. The enterprising state of Gujarat presents opportunities for MSMEs and banks alike. To meet these requirements, we will expand soon to 25 more cities and towns in the state and increase our digital footprint,” Rampal further said.

Published On : 08-11-2019

Source : Times of India