Annual Report - Bank of Baroda

Shri M.D. Mallya, Chairman & Managing Director
addressing SME Customers at Varanasi
quite significant, especially the IT enabled services, hospitality
services, tourism, couriering, transportation, etc.
To give a focused attention to emerging SMEs in India, the
Bank has been considering other commercial units with a
turnover up to Rs 150 crore at par with the SMEs. To promote
the growth of SME sector, the Bank has launched a special
and novel delivery model, viz. SME Loan Factory, which at
present, is made operational in 36 centres of the Bank and
well accepted in the market place. The SME Loan Factory is
an innovative model for streamlining processes and for timely
sanction of SME loan proposals. The model comprises of the
Central Processing Cell for speedy appraisal and sanctioning
of proposals within the stipulated deadline and a sales team
to follow up on leads generated by the branches. Going by
the past success, the Bank is planning to open more such
loan factories in the ensuing year. The Bank has SME Loan
Factories at all major business centres across the country,
viz. Agra, Ahmedabad, Bangalore, Bareilly, Baroda, Bhilwara,
Bhubhaneshwar, Bulsar, Chandigarh, Chennai, Coimbatore,
Dehradun, two Factories in Delhi, Hyderabad, Indore, Jaipur,
Jamshedpur, Jamnagar, Jodhpur, Kanpur, Kolhapur, Kolkata,
Lucknow, Ludhaina, 3 Factories in Mumbai, Nagpur, Nashik,
Pune, Rajkot, Raipur, Surat, Varanasi and Vishakhapatnam.
These SME Loan Factories together sanctioned loans
aggregating Rs 14,530 crore during 2010-11 as against Rs
11,071 crore in the previous year.
Growth of Business
The total outstanding in MSME Sector works out to Rs 27,365
crore as on 31st March 2011. The growth in lending to MSME
Sector during the last three years is given in the table below.
Year Growth
(%, YoY)
2008-09 24.18%
2009-10 43.98%
2010-11 29.63%
The percentage growth of MSME credit during 2009-10 was
relatively high as the advances up to Rs 20 lakh to Retail
Trade were classified for the first time under the “Micro & Small
Enterprises Sector” in 2009-10, in line with the RBI’s revised
guidelines issued during September, 2009. The growth rate
27
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