The public sector lender, Syndicate Bank has decided to focus more on loans to mid-corporate and micro, small and medium enterprise (MSME) segments. These areas will be the new thrust areas of Syndicate bank to emphasize over.
The public sector bank has created a separate vertical for the mid-corporate loans at Syndicate Bank's corporate office in Bangalore. The new vertical will focus on sanctioning credit proposals of Rs 5 to Rs 75 crore.
According to Mr. M G Sanghvi, Chairman and Managing Director of Syndicate Bank said that 38 branches of the bank will now only focus on mid-corporate credit. Along with this the bank has also assigned 57 branches to focus mainly on MSME loans. In the second quarter which ended on September, 2012, MSME loans accounted for 13.77 per cent at Rs 15, 391 crore of the total advances of Rs 1, 11,797 crore.
Syndicate bank has also made a new division to handhold small ticket borrowers who are finding it difficult to pay repay. This division will monitor the progress of the recovery process at the regional office which consists of five to six officials.
In the first six months of the current financial year, Syndicate bank managed to make recoveries aggregating Rs 428 crore as compared to Rs 387 crore in the corresponding quarter of the previous year.