SME Financing

Re-launch of CBL - SME

SME Division was formally formed in the bank in the middle of 2005.

Before that, banking facilities (with focus on extending credits) were available for SME s in traditional and conventional unstructured-method. Moreover, the work processes in place has been largely geography based branch banking system.
The paramount necessity of making corresponding changes/ modifications in the organization down to primary point of client interfacing (center and branch level) for marketing and delivery of products is recently being recognized for implementation.

The need of separation of core banking functions and centralization of businesses and surrounding support functions (like credit approval, loan documentation, trade services ) to attain large scale results in production and delivery of various SME friendly assets and liabilities is gradually putting in reality.

The present management is taking necessary measures and initiatives to re organize entire banking business including SME business in centralized fashion in line with the models being practiced by other modern and industry best practicing banks.

The move to shift in doing SME business from traditional branch banking system to a centralized platform of business focused concept will be obvious but meaningfully gradual in order to bring a systemic change in the organization.

SME s in the bank are being bifurcated in 2 natural segments. One segment will consist of Small Enterprises only. In short, we will term them S segment. The other is of Medium Enterprises. This will be termed as M segment.

The loan products (especially those for enterprises falling in S segment) are designed in such a manner that they remain fully compliant to the provisions of regulations in force, bank's internal fundamental credit norms and of course friendly to the underlying business requirements and dynamics to fulfill the purpose of generating mark up and payback bank borrowings.
For this, bank is designing structured loan products giving focus on the salient features of each sub segment of economy in which SME s operate.

The table below gives some features for eligible enterprises for availing financing under SME business of the bank::

These parameters between SE & ME may be revisited by Management from the time to time

Any business concern falling under the above criteria and is in operation for last two years ( exceptional cases for start up business will be considered if projections are very good ) with satisfactory banking / sales track record can avail credit facilities from CBL.