July 01, 2016: With state-run banks deserting HDFC Bank due to mounting bad loans, it is turning aggressive in the SME space.The private sector lender has launched an SME Bank which will provide full-fledged digital banking service to small and medium sector enterprises.
Banking facilities such as forward currency outward remittances, import bill under collection, besides viewing credit lines with the bank and outstanding amount can be availed by SME’s.
The hassles of visiting a branch can be avoided by uploading stock statements, insurance financials. The bank, which holds 7% of the total SME lending market share, is expecting it to grow at 30% every year. HDFC Bank currently works with over 100 thousand SMEs, and plans to convert 60% of their total transactions digital in the next one year. On an average, a single SME uses 200-300 cheque leaves every month, as per the bank.