(MENAFN- KNN India)
New Delhi, Jun 15 (KNN)
The State bank of India (SBI), the nation's largest lender, has made significant strides in its digital lending initiative for small businesses, according to a senior official.
Speaking at a banking conference organised by the IMC on Friday, Surendra Rana, Deputy Managing Director of SBI, revealed that the bank has sanctioned approximately 20,000 loans ranging from Rs 10 lakh to Rs 50 lakh for small businesses as part of a pilot program launched in December.
Encouraged by the positive results of the pilot, which allows customers to obtain loans from the convenience of their homes, SBI is now broadening the loan amount range to Rs 5 crore.
"We rolled out the Rs 10-50 lakh model in December, and I am pleased to share that we have already sanctioned around 20,000 loans through this process, which is operating smoothly," Rana stated.
He mentioned, "Now, we are escalating it to Rs 5 crore."
These remarks come shortly after the bank announced its intention to prioritise lending to small businesses as a key driver for growth and profitability over the next five years.
Rana highlighted the collaborative efforts between banks, governments, non-profit organisations, and fintech companies to deepen their outreach and address the credit needs of small businesses more effectively.
While acknowledging the significant progress made in financial inclusion, Rana emphasised the challenges that banks must navigate, such as diverse geographies, limited financial literacy, and social and cultural constraints.
SBI services 16 crore of the 52 crore Prime Minister Jan Dhan Yojana accounts opened since 2014, reflecting its commitment to financial inclusion.
Rana noted that the concept of financial inclusion has evolved beyond merely opening bank accounts, now encompassing the provision of credit, insurance coverage, and other financial services.
He commended the Reserve Bank of India (RBI) for its efforts in promoting financial inclusion and highlighted the regulatory sandbox for testing future solutions as an underappreciated aspect of this endeavour.
(KNN Bureau)
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