State-run Dena Bank has decided to restructure the loans given to SMEs, which will involve deferring the installment payment period and providing more liquidity, but the rejig would be done only on a case to case basis.
"We will restructure the SME loan portfolio in the wake of problems being faced by some of the SME customers and exporters.
The restructuring of loan will include allowing more time to them (SME) for payment of installment of the credit facility," Dena Bank Chairman and Managing Director D L Rawal told reporters today while inaugurating a branch here.
In addition to it, the bank would also help SME and exporters to come out of the present liquidity crunch by sanctioning more working capital to them.
Elaborating on it, he said, "Suppose an exporter has informed us that his payment might get delayed from buyer side. In this case, if he is having a credit limit of Rs one crore then we will provide him 20 per cent of loan as working capital for certain period.
"As a result, the exporter could get much needed capital to run its business," he said.
{{/usCountry}}"As a result, the exporter could get much needed capital to run its business," he said.
{{/usCountry}}However, he clarified that the bank would restructure the loan while considering the merit of the case.
He admitted that the SME sector, including export segment, is hit hard due to the global slowdown as their receivables have got delayed on temporary basis and moreover suppliers are not getting enough orders from foreign buyers.