SME POLICY

18. Training:

Credit officials at the various levels have been trained adequately, with a view to up date themselves and also give renewed thrust to the SME lending. Training programmes on an on-going basis is proposed at MDI,CBD Belapur and other STCs, for all the Managers and Senior credit officials at all branches handling SME credit so that the bank staff would be equipped with the necessary skill/expertise to achieve the required SME business growth.

19. Tie-Up For SME Financing with SIDBI

The MOU for a strategic alliance with SIDBI for acceleration of deployment of credit in 13 Zones covering 35 Centres has already become functional to ensure adequate flow of credit to the SME sector at the above centres. Besides the above Zones and Centres, the joint financing with SIDBI is also taken up at other Zones/Centres where mutually agreed upon.

20. Bank’s SME Schemes/Products.

To assist and promote the growth of the SME sector, Bank would formulate schemes and products for specific customers/areas/activities such as:

• Star Channel Financing catering to our manufacturer/trader customers in the SME sector.
• Energy Efficiency Projects
• Scheme for Solar Water Heaters.
• SME Business Card.
• 45 cluster-based schemes at identified centres.

There will be continuous review of schemes, products, and procedures for improvement and matching market expectations.

21. Rehabilitation of Sick units & Debt Restructuring

Rehabilitation involves pre-emptive identification of causes of sickness, assessment of the sick unit’s viability, and nursing viable sick unit back to health to ensure that the unit generates adequate surplus to service the debt including interest burden and also to wipe off the past losses. The Bank’s extant instructions and RBI guidelines on the Rehabilitation of Sick Units would be applicable mutatis mutandis.
Bank’s Policy document on Debt Restructuring and Rehabilitation for SMEs was adopted by the Board on 21/01/2006. The same has been reviewed on 23.04.2007.

22. Monitoring & Reporting to Top Management

The progress of the SME Branches and the SME Credit expansion as also the units under nursing would continue to be submitted to the Board on a quarterly basis to ensure that the required emphasis at the highest forum of the bank is given to the SME sector.

23. Display of SME Policy

For wider dissemination and easy accessibility, the reviewed SME policy guidelines would be displayed on the Bank’s website. The various schemes are already on display at all the identified SME branches and in the Bank’s website.

24. Bank’s Commitment

The Bank is committed to the following:

• To provide checklists along with applications to SME Proponents.
• To issue acknowledgements upon proponent’s submission of application forms.
• To comply with the stipulated time norms for disposal of applications.
• To consider composite loans up to Rs.1 Crore.
• To cover all eligible SSI advances up to Rs.50 Lakhs without any collaterals or third party guarantee under Credit Guarantee Fund Trust Scheme for Micro & Small Industries.
• No collateral Security or third party guarantee for loans up to Rs.5 Lakhs.
• No collateral for loans over Rs.5 Lakhs and up to Rs.50 lakhs subject to good track record and financial position and availability of CGTMSE guarantee.
• The issue of collateral security would be dealt with on account-specific basis.
• To adopt Turnover Method prescribed by Nayak Committee for all Working Capital advances up to Rs.5 Crores or MPBF method for specific cases with operating cycles longer than 3 months.
• To offer interest concession up to 1% to Women Entrepreneurs under Priyadarshini Scheme.
• To consider short term loan facility up to Rs.25 Lakhs under Star SSI Suprime Scheme at Sub-PLR Rates to meet temporary liquidity requirements of eligible creditworthy borrowers with good track record.
  

Annexure I

List of Industry-Related Service Activities
1. Advertising Agencies.
2. Marketing Consultancy.
3. Industrial Consultancy.
4. Equipment Rental & Leasing.
5. Typing Centres.
6. Xeroxing.
7. Industrial Photography.
8. Industrial R & D Labs.
9. Industrial Testing Labs.
10.Auto Repair, Services and Garages.
11.Documentary Films on Themes likeFamily Planning, Social Forestry, Energy Conservation, and Commercial Advertising.
12.Laboratories engaged in testing of Raw Materials and Finished Goods.
13.“Servicing Industry” Undertakings engaged in maintenance, repair, testing or servicing of all types of vehicles and machinery of any description including Electronic/Electrical Equipments/Instruments i.e. measuring/control instruments, televisions, tape recorders, VCRs, Radios, Transformers, Motors, Watches, etc Press
14.Laundry & Dry Cleaning.
15.X-Ray Clinic.
16.Tailoring.
17.Servicing of Agriculture Farm Equipment e.g.. Tractor Pump Rig Boring Machines etc.
18.Weigh Bridge.
19.Photographic Labs.
20.Blue Printing and Enlargement of Drawing/Designs, Facilities.
21.ISD/STD Booths.
22.Teleprinter/Fax Services.
23.Creation of Data Bases suitable for Foreign/Indian Markets. Software Development.
24.Data Conversion, Data Mining, Digitisation, Data Entry, Data Processing, Data Warehousing.
25.Digitisation of spoken material (e.g. legal and medical transcription)
26.Computerised Call Centres.
27.Geographic Information Systems Mapping/services.
28.Web-Designing/Web Content Development Services.
29.Computer Aided Design/CAD/CAM Services. 0.E-Mail, Data, Internet, Fax Service Provider.
31.ISP Services(Communication channels like V-Sat, Optical Fibre NOT included).
32.Computerised Desk Top Publishing.
33.Web Service Providers, including web hosting and website management.
34.USDN Service Providers.
35.Computer Systems AMC Service Providers.
36.Multi Media Development Units (including e.g. animation and special effects, video and photo digitization)
37.IT Solution Providers/Implementors (such as and including server/data banks, Application Service Providers, Internet/Web-based e-Commerce service providers, Smart Card customization service provider, systems integration service providers).
38.Cyber Café/Cyber Kiosks/Cyber Parlours and Video Conferencing Centres/Parlours.
39.Back Office Operations relating to Computerised Data.
40.Other Services provided with the intensive use of computers (such as and including telemedicine services, remote access cyber services, remote diagnostic and repair services)
41.Multi Channel Dish Cable TV with Dish Antenna.
42.Video Shooting.
43.Hot Mix Plant (irrespective of mobile or immovable).
44.Research and Development.
The list is illustrative only and not exhaustive.

 Back