SBI to increase SME lending by 10-12%

India’s largest lender State Bank of India (SBI) aims to grow its loans to the small and medium enterprises (SMEs) by 10-12% by the end of this fiscal year. The MSME sector suffers from grave absence of bank credit despite generating maximum employment in the country. The bank will move from cash flow-based financing from balance sheet-based funding to achieve the desired growth.
SBI has also partnered up with National Stock Exchange (NSE) and Small Industries Development Bank of India (SIDBI) to create a bill discounting platform called trades exchange. The platform aims to facilitate better credit flow to SME units.