ISLAMABAD (January 26 2003) : Small and Medium Enterprises (SME) Bank Ltd has decided to provide Rs 2,000 million as credit facility to the small and medium enterprises, in a bid to accelerate economic activities and alleviate poverty, during current year.
President of SME Bank, Mansoor Ali Khan, told APP here on Saturday that “SME bank is committed to help all those who want to set up industrial units to earn livelihood and serve the nation.”
In this connection, he said, SME bank has launched a 'Hunermand Pakistani' programme for promotion of small and medium enterprises in the country.
This programme includes financial assistance in the fields of Furniture, Replacement of Power Looms, Motorcycle-Rickshaw, Fruits and Vegetable, Fisheries (Boats & Processing) and OEM (Original Equipment Manufacturing), he added.
He said SME Bank is already providing assistance for setting up new manufacturing units of Fans, Cutlery, Surgical Instruments, Doctors & Dentists Clinics, Women Entrepreneurs and CNG stations.
Mansoor said that the bank had achieved 96 percent of the recovery and 97 percent disbursement targets and its new borrowers' number increased to 1,316 during 2002.
He said that nearly Rs 11 billion is lying outstanding against the borrowers of Small Business Finance Corporation (SMFC) and of which a recovery of Rs 5,271 million has been made during last three years.
He said RDFC, the other component of SME Bank, has Rs 3 billion as outstanding and its rate of recovery is very low.
The SME Bank after restructuring has financed 529 projects with Rs 269 million, covering 23 sectors including automobiles.
CNG, education, fisheries, food, garments, health, services, textiles, trading, manufacturing, power generation and pharmaceutical. The SME Bank has disbursed loans of Rs 163 million to 453 SMEs.
It has also approved 232 SME loans amounting to Rs 188 million to be disbursed shortly.
After its restructuring the SME Bank has so far created around 1500 new jobs, he added.
Mansoor said the Bank has disbursed loans worth Rs 600 million and this figure is likely to cross Rs 1000 million in 2003 and is expected to reach Rs 1500 million mark by the end of 2004.
He said the business plan outlined by the SME Bank emphasises on enhancing credit portfolio, enlarging the scope of acceptable collateral, secured investment through better management and skill development.
As far as recoveries are concerned, the SME Bank from the old SBFC portfolio recovered Rs 5271 million up to December 2002.
It has brought under net 1316 new borrowers and improved its balance sheet considerably, he added.