"This Year Our Main Focus Will Be On MSMES" R K Gupta, Executive Director, Bank of Maharashtra is tlaking about SME financing by the bank

Bank of Maharashtra has registered Net Profit of Rs 100.69 crore for the financial year 2015- 16. However due to higher provisioning on NPAs it has booked loss of Rs 119.84 crore in Q4 ended 31.03.2016 as against net profit of Rs 112.72 crore in the corresponding quarter of 2014- 15. The Bank has achieved landmark business level of Rs 2,50,000 crore as on 31.03.2016. The Bank's total business increased by Rs 26,901 crore (12.05 %) on Y-o-Y basis. R K Gupta, Executive Director, Bank of Maharashtra delves more on SME financing by the bank.

In last financial year what kind of SME financing has been given by Bank of Maharashtra?

Our growth in the last financial year was around 15 per cent in SME financing.

Any plans you have set for the next financial year?

This year our main focus will be on MSME and retail only. In MSME we are planning to increase it by 20 per cent.

Are there any specific schemes for women entrepreneurs and startups?

Our existing schemes are well equipped to cater to women entrepreneurs and startups. We don't feel the need to introduce any new scheme.

What is the total disbursement done in SME space?

It must be around Rs 5,000 cr.

Are you making any changes with regards to Make in India or Startup India?

We have taken adequate steps to see that the turnaround time is reduced. The rate of interest and other terms are quite favorable for the startups. Our main aim now is to reduce turnaround time, so there is easy and cheap financing.

What's the current rate of NPAs from the SME sector?

Because of one single account or single exposure the NPA is high. If we exclude that exposure, our NPA level will be 6 per cent from SMEs.

Any Special due diligence you have brought in place with regards to SMEs?

We just see the market scenario and the feedback. Check the promoter's background besides other things. If he wants to enter how that industry is doing.

Any Expansion plans in terms of growing the branches?

We will be increasing number of branches, but not much. This year we have to put up a plan to the board. Our emphasis will not be on the expansion of the branches.

(Article first published in Entrepreneur India June 2016 edition)