SBI FOR SME
State Bank of India is a pioneer in SME financing in India. As a bank, it has been playing a critical role in the overall growth and development of the SME sector. The Bank has developed a wide array of products and services to cater to the evolving needs of the SME sector. With over 1 million customers, our SME Portfolio is more than 2.25 lakh crore as on 31 March 2017 accounting for approx. 14% of SBI’s total advances. SBI’s approach in driving SME Growth is based upon 3 pillars:
In line with the initiative taken by Govt of India, SBI has laid special emphasis on extending credit facility to eligible unit and has achieved 102% of its targets for the year FY 2017.
Apart from a wide network of branches across the country, 1248 branches are specialized in SME lending. Single point contact through dedicated relationship managers have been put in place to ensure end to end solutions
Under Supply Chain Finance, SBI is further strengthening its relationship with the Corporate World and has over 251 tie-ups with Industrial Majors covering 17300 dealers & vendors. SBI has emerged as a major player in Supply Chain Finance by leveraging technology and its branch network. It has enabled MSMEs access to finance easy and at competitive rates.
TReDS- Institutional setup TReDS, have been set up for flow of finance to MSMEs, SBI is first among all PSBs to register on the TReDS platform RXIL and M1xchange for discounting of invoices of MSMEs.
The Bank has adopted Cluster approach as a strategy to improve the credit flow to SME sector through industrial and artisan clusters across the country. It seeks to extend techno-managerial assistance and counseling support to SMEs through Consultancy Services Cell and Project Uptech. This initiative facilitates technology up-gradation in Industrial Clusters. The bank promotes entrepreneurship through Entrepreneurship Development Programme (EDPs) under tie-up with Entrepreneurship Development Institutes.
The Bank offers various types of current accounts, transaction products and deposit products to suit every need of the SME sector. SME has designed various Technology and services related products to suit the needs of SME customers.
The redesigned underwriting methodology called the Credit Underwriting Engine (CUE), moves away from the traditional balance sheet based underwriting to revised financial modules- balance sheet augmented by recasted cash flow from multiple sources.