HDFC Bank’s loan book to MSMEs exceeds Rs 13,000 crore in Uttar Pradesh

HDFC Bank, the country’s largest private sector lender, said on Friday that its MSME book saw a growth of 17 per cent YoY to over Rs 13,000 crore as of the end of September in Uttar Pradesh.

As of September 30, 2021, the loan book for Small, Medium and Micro Enterprises (MSME) in Uttar Pradesh stood at Rs 13,154 crore, HDFC Bank said in a statement. The Mumbai-based bank said it has provided loans to more than 66,000 micro, small and medium-sized businesses so far, in the country’s most populous state. Under the government’s ECLGS scheme, HDFC Bank has disbursed advances to more than 5,950 Micro, Small and Medium units in the state.

The Emergency Credit Line Guarantee Scheme (ECLGS) was introduced during the pandemic in May 2020, to provide financial assistance to companies affected by the pandemic, and it is envisaged to provide unsecured loans of Rs 3 crore to micro, small and medium enterprises and businesses across the country. The ECLGS chart was set for September 2021.

HDFC Bank started providing loans to MSMEs in Uttar Pradesh in 2004 and in the last 17 years it has provided loans to 66,869 businesses in the state, the lender said.

These institutions demonstrate the entrepreneurial spirit that forms the backbone of economic growth. To date, HDFC Bank has provided loans to MSME clients in more than 500 cities and towns covering 75 districts in UP. The bank has 537 branches in the state.

MSMEs are the backbone of the economy and are among the largest sources of jobs. “We are proud to be a partner in their growth journey through our world-class products,” said Shyamal Singh, Regional Head of Business Banking for Uttar Pradesh, HDFC Bank. Benefiting from the favorable policy environment, he said, Uttar Pradesh provides opportunities for SMEs and banks alike. “To meet these requirements, we will be expanding to an additional 30 locations in the state as well as increasing our digital footprint,” he added.