Mumbai: India’s largest lender, State Bank of India (SBI) has restructured loans extended to around 26,000 distressed SME units since December to help them tide over the economic downturn, a top SBI official said.
SBI has received around 10,000-15,000 higher restructuring applications from Small and Medium Enterprise (SME) customers that would take the number of total restructured units to around 41,000 by March, SBI Chief General Manager B S Bhasin said.
“The restructuring has been done for healthy units facing challenges owing to the global meltdown. This include both working capital and term loans,” Bhasin told reporters here.
SBI disbursed Rs 3,000 crore loans to its SME clients in January and expects to extend Rs 2,000 crore in February and by up to Rs 4,000 crore in March, Bhasin said.
“We have targeted to disburse around Rs 22,000 crore to SMEs by March-end,” Bhasin said.
Though SBI had initially set a Rs 25,000 crore SME lending target in FY 09, stress in certain segments, primarily in textiles and garments prompted the lender to revise the target downwards, Bhasin said.