Page 6 - Banking Finance April 2019

BANK UPDATE

PNB sanctions Rs. 689 cr loan to MSME's Exim Bank eyes 10%

Punjab National Bank has sanctioned loans worth Rs 689 crore to over 1,600 growth in business
Micro, Small and Medium Enterprises (MSMEs) through
the psbloansin59minutes.com portal as part of its effort The Export-Import Bank of India is
to promote such industries. expecting a 10
per cent growth
Under the Mudra Yojana, the bank has offered loan to
in business this fis-
over 2.69 lakh small entrepreneurs this fiscal (till Feb- cal. According to
ruary 14, 2019).
David Rasquinha,
"In November 2018, Hon'ble Prime Minister announced the launch of the 59- Managing Direc-
minute loan portal to enable easy access to credit for MSMEs. Under this initia- tor, Exim Bank's
tive, the bank has sanctioned loans to over 1,600 accounts with a total sanc- balance sheet will touch Rs.1 lakh
tioned amount of Rs 689 crore (till February end)," PNB managing director Sunil crore by March 2019. A majority of
Mehta told. the growth is driven by overseas
project finance business.
MSMEs through this portal can avail loans of up to Rs 1 crore in 59 minutes or
less than an hour. MSMEs apply for loans using their GST registration as the "We are looking at a 10 per cent
portal is integrated with GST server at the back-end as well as IT, credit bu- growth in our balance sheet to Rs.1
reaus and banks. lakh crore by March 2019. This has
been supported by a growth in over-
Syndicate Bank to offer shares to employees at dis- seas project finance business," he told.
counted rates Under the overseas project finance
business, Exim Bank has the largest
Syndicate Bank has proposed to launch Employee Share Purchase Scheme (ESPS)
single-country exposure in
at discounted rates. Discounts will range from 23 Bangladesh at close to $9 billion, to
to 25%, based on the employee status in the staff be used over a period of five to six
hierarchy, with the lower-grade employees get- years. It finances railway lines and
ting the maximum discount. The bank hopes to rolling stock, among others. Besides
mop up Rs. 500-600 crore through the scheme, railways, the bank is bullish on re-
said Mrutyunjay Mahapatra, Managing Director newable energy, power transmis-
and CEO of the bank.
sion, agriculture, textiles, and sugar.
He added the bank is expecting an early settlement of Rs. 18,000 crore of its Exim Bank extends lines of credit to
stressed loans comprising more than 90 cases that are currently before the developing nations and supports the
various National Company Law Tribunals (NCLT). The bank has also taken steps creation of infrastructure projects. The
to bring its gross NPA below 12% and net NPA below 6 per cent from the exist- bank also has a significant exposure in
ing levels of 12.5 per cent and over 6%. Sri Lanka. It has 236 lines of credit,
covering 62 countries in Africa, Asia,
Govt appoints Hasmukh Adhia as Non-Executive Chair- Latin America, and the CIS, with credit
man of Bank of Baroda commitments of around $23 billion.

The government has appointed former Finance Secretary According to Rasquinha, non-per-
Hasmukh Adhia as Chairman of Bank of Baroda. The bank forming assets (NPA) of the banking
is set to become the third-largest lender in the country system have peaked and are now
after amalgamation with Vijaya Bank and Dena Bank expected to trend down. The current
effective April 1. "Shri Hasmukh Adhia, former Finance level of NPAs witnessed by the indus-
Secretary, appointed Non-Executive Chairman of Bank of try was primarily on account of the
Baroda. Bank poised to leverage benefits of synergy and "outside environment". With the
scale with stronger pan-India presence," Financial Services external environment "improving",
Secretary Rajiv Kumar said in a tweet. the asset quality will improve.

6 | 2019 | APRIL | BANKING FINANCE