CANARA BANK LAUNCHES MSME FACILITATION CENTRE

 

Coimbatore, Feb 1:  

Canara Bank has launched ‘Çanara MSME Facilitation Centre’ to bring the small and micro units within formal banking fold.

The facilitation centre at Coimbatore is among the five rolled out by the bank on a pilot basis. The others are located at Indore, Kolkata, Ludhiana and Pune, U. Ramesh Kumar, General Manager, Canara Bank (Circle Office) in Coimbatore, said.

Speaking on the sidelines of this launch, he told Business Line that those units dealing with other banks could also seek guidance from this centre. The centre would help the MSME units, which are today in the clutches of private money lenders, to come under formal banking stream.

Á majority of MSMEs depend on the informal sector for their finance needs either because they do not maintain proper books of accounts/records or have no project report. This facilitation centre would handhold, support and provide assistance to such units and potential entrepreneurs during the initial stages of development, he said.

 http://www.thehindubusinessline.com/companies/canara-bank-launches-msme-facilitation-centre/article5642458.ece

CANARA BANK PLANS TO FUND COFFEE START-UPS

Bangalore, January 26:  

The public sector Canara Bank is drawing up a plan to fund start-ups involved in the entire coffee supply chain including grinding, roasting, mixing and even setting up cafes.

“Canara bank is ready to offer up to ₹1 crore as loans and the task to identify entrepreneurs lie with the Coffee Board,” Ravindra Bhandari, General manager, Canara Bank, told Business Line on the sidelines of India International Coffee Festival.

“In addition to identifying entrepreneurs, the Board is planning to offer 25 per cent subsidy, with a cap of ₹25 lakh,” he added.

The bank is planning to treat loans to coffee entrepreneurs under CGMSE without guarantees. “At present we have not set any target or number of loans to be disbursed under the scheme. This will be offered in all our branches in a month or two. Then aggressively push it as a separate business in the next fiscal,” said Bhandari.

‘Flavour’ scheme fits into Coffee Board’s initiative to boost domestic coffee consumption and also to help sustain coffee cafe culture .

Welcoming the Bank’s move, Jawaid Akhtar, Chairman, Coffee Board, said, “As coffee cafes and parlours are mushrooming in the country, it provides opportunities for employment generation. This is one of the scheme recommended by Coffee Board to be included the 12th Plan.”

CANARA BANK PLANS TO FUND COFFEE START-UPS

 

Bangalore, January 26:  

The public sector Canara Bank is drawing up a plan to fund start-ups involved in the entire coffee supply chain including grinding, roasting, mixing and even setting up cafes.

“Canara bank is ready to offer up to ₹1 crore as loans and the task to identify entrepreneurs lie with the Coffee Board,” Ravindra Bhandari, General manager, Canara Bank, told Business Line on the sidelines of India International Coffee Festival.

“In addition to identifying entrepreneurs, the Board is planning to offer 25 per cent subsidy, with a cap of ₹25 lakh,” he added.

The bank is planning to treat loans to coffee entrepreneurs under CGMSE without guarantees. “At present we have not set any target or number of loans to be disbursed under the scheme. This will be offered in all our branches in a month or two. Then aggressively push it as a separate business in the next fiscal,” said Bhandari.

‘Flavour’ scheme fits into Coffee Board’s initiative to boost domestic coffee consumption and also to help sustain coffee cafe culture .

Welcoming the Bank’s move, Jawaid Akhtar, Chairman, Coffee Board, said, “As coffee cafes and parlours are mushrooming in the country, it provides opportunities for employment generation. This is one of the scheme recommended by Coffee Board to be included the 12th Plan.”

http://www.thehindubusinessline.com/companies/canara-bank-plans-to-fund-coffee-startups/article5620636.ece

 

Canara Bank had recorded an improvement in loan quality

Kolkata, Nov. 22:

Canara Bank expects its non-performing assets (NPAs) to decline in the third and fourth quarters. The bank had recorded an improvement in loan quality in the second quarter of this fiscal.

R.K. Dubey, Chairman and Managing Director of Canara Bank, said the sequential improvement in asset quality and decline in NPAs are likely to continue in the second half of the current fiscal.

In the second quarter, most of the state-run banks saw their gross as well as net NPAs rise over the first quarter as a percentage of total loan, except for Canara Bank and Bank of India, which reported a fall in both gross and net NPA ratios.

Canara Bank’s gross NPAs in the second quarter fell 27 basis points sequentially to 2.64 per cent while net NPAs dropped 18 bps to 2.30 per cent.

Monitoring recovery

“I hope that in my bank the trend of declining gross NPA is likely to continue in the third as well as the fourth quarters of this financial year…asset quality should not deteriorate further. We don’t want it to deteriorate further like in some major banks where you might have noticed it is now touching 4 to 5 per cent or even at 7 per cent,” Dubey said.

The bank was now controlling slippages by aggressive credit monitoring of existing accounts and stressing on recovery.

“We have put three general managers for recovery. With credit growth going up, recovery going up and slippages going down, I hope this trend should continue,” he said.

Dubey said the bank’s restructuring pipeline was not going to impact the asset quality in the third as well as the fourth quarters for its stringent corporate debt restructuring (CDR) norms. He said the bank had made “adequate provisioning” for bad loans.

 

 http://www.thehindubusinessline.com/industry-and-economy/banking/canara-bank-sees-further-decline-in-bad-loans-in-second-half/article5380302.ece