Sudhir Kumar Jain in Calcutta on Wednesday. A Telegraph picture
Calcutta, July 23: Public sector lender Syndicate Bank is targeting a 20 per cent business growth in 2014-15 through increased lending to mid-size firms, small scale industries and the retail segment.
The bank’s domestic business had registered a growth of 13.51 per cent to Rs 330,701 crore in 2013-14 from Rs 291,337 crore in 2012-13.
“Our thrust is on the MSME, mid-corporate and retail segments. For mid-corporates (usually with revenues less than Rs 100 crore) we are setting up 20 exclusive financing centres and we are also planning to set up processing centres for SMEs,” Syndicate Bank chairman Sudhir Kumar Jain told The Telegraph.
Jain said the bank was eyeing incremental advances of at least Rs 5,000 crore a year in the mid-corporate segment through these specialised branches.
The bank was also strengthening its network of over 3,200 branches.
“We have already set up 22 branches in the first quarter and are planning 350 more besides the 20 mid-corporate financing branches,” the chairman added.
To further streamline its operations, the bank is looking to engage consultants to improve its human resource management, branding and CSR activities.
According to Jain, the bank is looking to expand its overseas business as well and is eyeing Dubai and Hong Kong among other places.
At present, its sole overseas branch is in London, which had registered a total business of Rs 57,880 crore as of March 31, 2014.
To fund its expansion and business growth and at the same time maintain capital adequacy under Basel 3 norms, the bank is eyeing a fund infusion of Rs 1,200 crore. It was earlier planning an issue of qualified institutional placement of Rs 200 crore, which, Jain said, had been revised.
“The market conditions are favourable and we can benefit from it,” he said.