HDFC bank MSME loan book in Gujarat crosses Rs 15000 crore, sees a rise of 30%November 07, 2019
Ahmedabad: Amid the general economic slowdown in the country, Leading Private Sector Bank HDFC today claimed that its MSME loan book in Gujarat, one the leading Industrial state, has crossed Rs 15000 mark and it has seen an increase of 30% Year on Year.
Addressing a press conference here Country Head- Business Banking of the Bank, Sumant Rampal said that the gross NPA of the bank in MSME sector in Gujarat at 1.12% was also less than the national average of 1.3% in this regard.
On being asked that the general perception was that there was an economic slowdown in the country after the demonetization and implementation of GST and the MSME sector which was deemed the back-bone of Gujarat economy has also been hit badly and in such a situation how his bank has managed to see such a robust growth in MSME loan portfolio, Rampal said that in fact the structural reforms due to the GST has benefited the sector. All those companies which had also done additions to their products and services have seen the benefit. More benefits of GST would be seen in the coming days. The benefit of US-China trade war in the form of increase in exports from India has also helped the MSME sector and in turn increased the loan demand.
He said that his bank has issued loans to various type of Industries across the MSME sector and most of them were doing well.
Rampal said that digital transactions in this sector of his bank comprise over 60% of the total transactions. He also said that of the total MSME loan in Gujarat 60% was for working capital. He said that the bank would open 26 new branches in Gujarat by January next year. His bank was number one for MSME sector in Gujarat with 12% of total loan share.
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