IOB to set up 'SME Instant Cash'

BANGALORE, INDIA: The Indian Overseas Bank (IOB) has said it is planning to set up 40 small and medium enterprises (SME) cluster branches in different parts of the country in this fiscal.

The bank is also planning to set up a scheme 'SME Instant Cash', taking into account the fact that SMEs need emergency working capital.

Also read: SMEs unhappy over RBI's interest rate hike

“The micro, mini and small enterprise (MSME) sector is one of the focus areas for us. We have applied for licence from the Reserve Bank of India to open SME cluster branches across the country,” said M Narendra, CMD, IOB.

Also read: SMEs to get exemption from capital gains tax

The lender is also eyeing for lending to the mid corporate segment. “There is huge credit appetite among the mid-corporates particularly in tier II and tier III locations,” said Narendra. “Though there are some concerns on asset quality in some sectors in the banking industry, as a whole, the credit growth potential still looks positive.”