HDFC Bank‘s MSME book grew 30% year-on-year to cross the Rs 2 lakh crore mark as of December-end, mainly boosted by the pandemic-induced ECLG scheme under which it disbursed over Rs 23,000 crore.

HDFC Bank is India’s second-largest lender to the MSME segment and its loans have grown by 30% from December 2019 to 2020 and stand at pre-Covid levels.

The MSME sector accounts for about 30% of the GDP and is one of the largest employers in the country.

The bank’s loan book is spread across sectors and geographies.

“HDFC Bank ranks amongst top banks in terms of extension of credit under the ECLGS scheme which stood at around Rs. 23,000 crore as on December 31, 2020,” the bank said in a statement.

The government had launched the Rs 3 lakh crore ECLGS Scheme to help MSMEs during the pandemic.

“It is a testimony to our commitment to strengthen the MSME sector,” said Sumant Rampal, senior executive vice president, business banking and healthcare finance, HDFC Bank.

“We are aligned with the government’s vision to support the MSME sector which is among the largest job creators and an engine for economic growth.”

“Even during the lockdown, it has been our pride and privilege to serve our MSME customers across sectors/industries during the lockdown, especially so in the semi-urban and rural areas,” he added.

“We reached out to them with a suite of customized products which they could access conveniently either through physical or electronic channels,” Rampal further said.

“This includes the entire range from the conventional working capital/term loans, structured cash flow management & financing solutions, Trade financing solution, FX services, the individual banking needs of promoters and family, best in class offering of salary accounts for employees of MSMEs plus advisory on investment banking,” he said.

The customers are spread across sectors like textiles, fabrication, agro-processing, chemicals, consumer goods, hotels & restaurants, auto components, pharmaceuticals and the paper industry.

They also span the entire selling chain ranging from wholesalers, retailers, distributors, stockists and supermarkets.

The MSME portfolio is geographically balanced with it being spread across regions, metropolitan cities, urban, semi-urban and rural regions.


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