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Federal Bank signs an MOU with NSIC
Posted on: 13/Oct/2011 4:24:38 AM
Federal Bank, the Kerala-based private bank has signed an MOU with NSIC (National Small Industries Corporation Ltd) last week, with the objective of facilitating smooth credit flow to the MSME (Micro, Small and Medium Enterprises) sector. NSIC is a Central Government agency under Ministry of MSME, engaged in promotion and growth of MSME sector. This tie-up would provide a broader platform for extension of easy credit to Federal Bank’s MSME customers.
Federal Bank that currently has over 750 branches across India, expects to see a 5% addition to the existing 29% of their current total advance MSME portfolio. Under this tie up, NSIC shall identify entrepreneurs and forward viable loan proposals to different branches of Federal Bank and the bank will in turn sanction the loan proposals subject to eligibility.
Speaking on this occasion, Shri P.C John, Executive Director – Federal Bank says “We are delighted to partner with NSIC and extend our complete support to make this initiative a huge success and look forward towards a mutually profitable growth. This association will strengthen our aim of becoming the Preferred SME Bank”.
Shri. Ravindra Nath, Director (Finance), NSIC Ltd, sharing his views on this tie-up said, “We are keen to partner with Federal Bank, since them being one of the prominent banks having a strong presence in the SME market coupled with an increasing number of branches they operate from, it will only be a progressive step towards credit penetration into the MSME sector”.
