Public sector lender, IDBI Bank is lending its prime focus on the north eastern front of the country. Apart from investing in the infrastructure sector, the bank is also eyeing the MSME sector.

"We will be too keen to finance all viable projects coming up in this region. I see huge potential not only of infrastructure, but also of micro and small enterprises in North-East," said CMD of the bank, RM Malla.

The bank has signed a memorandum of understanding (MoU) in this regard with Small Industries Development Bank of India (SIDBI) regarding provision of finance to MSME sector. As per the deal, loan part would be looked after by SIDBI while working capital funding would be catered to by IDBI Bank.

"The whole objective is that one need not go to two people to get the project appraised. We are offering a joint appraisal and both documentation and credit delivery will be a very smooth process," added SKV Srinivasan, executive director of the bank.

"In micro and small enterprises, we have both cluster- based approach and general approach. In cluster based approach, our endeavour is to identify clusters and design products," Srinivasan said.

Apart from financing aims, the bank also wants to increase its presence in the region. According to Malla, the bank is planning to set up 7 more branches in NE by May 2011.