Mumbai: Country’s largest private sector lender HDFC Bank, which has a focus on the MSME sector, is hiring 500 more relationship managers this fiscal as the bank is expanding its coverage to 575 districts, a senior banker has said. The headcount addition will take the bank’s Micro, Small and Medium Enterprises (MSME) vertical strength to 2,500. As of June end, the HDFC Bank’s employee strength stood around 1.23 lakh.
The bank’s MSME vertical covers 545 districts now with dedicated relationship managers and supervisors, which will be expanded to 575 districts or more by the end of this fiscal.
“As we are expanding our MSME footprint to 575 districts from 545 now, we are hiring over 500 more to the 2,000-strong headcount at the MSME vertical this fiscal year. This should take the overall headcount at the vertical to a little over 2,500,” Sumant Rampal, senior executive vice-president for business ba ..
After reclassification and the resultant tagging of wholesaler and retailer loans under the MSME book, the bank closed the MSME book at Rs 2,01,833 crore in March 2021 quarter, marginally up from Rs 2,01,758 crore in December 2020, when it grew by over 30 per cent.
The government recently asked MSMEs to be re/de-classify themselves based on their turnover and get a Udhyam registration certificate.
The Bank’s MSME portfolio is spread across sectors such as textiles, construction, agro-processing, chemicals, consumer goods, hotels and restaurants, auto components, pharma and paper industries, and ranges from wholesalers, retailers, distributors, stockists to whole sale The series is also included. and supermarkets, Rampal said.
Rampal said the bank has been focusing its attention on the sector for the past two years, and it has only increased since the pandemic when the government introduced several measures to help small businesses tide over the crisis with an emergency credit line guarantee scheme. Open the solution. ECLGS) is the biggest booster helping 30 per cent higher lending till December 2020, to the tune of Rs 2,01,758 crore.
Although the RBI had said last Friday that there was nothing alarming about the rise in MSME bad loans, a report by SIDBI-CIBIL in late July said, the level of NPAs among MSME borrowers in the March 2021 quarter increased from 12 percent to 12.6 percent. December 2020, while the loan for them increased to Rs 9.5 lakh crore in FY21 from Rs 6.8 lakh crore in FY10.