Bangalore, Sept 28: Canara Bank has signed a Memorandum of Understanding with Small Industries Development Bank of India (SIDBI) to work jointly in the areas of financing small scale industries, service sector and for undertaking related infrastructure projects. "The institutions will entertain loan proposals for term loans as well as working capital. The co-financing arrangement would have the advantage of core competence of both the financial institutions and the vast branch network of Canara Bank, which would benefit the clients to access a variety of financial packages to suit their specific needs," a Canara Bank press release said here today.
"Joining hands with SIDBI will create synergy in identifying, evaluating and extending finance to upcoming units," Canara Bank chairman and managing director R V Shastri said.
He said the bank proposes to increase SSI advances by Rs 626 crore during 2003-04 and record a growth rate of 16.21 per cent and take the outstanding credit to SSI to Rs 4510 crore.
"This is part of strategy of SIDBI to join hands with important banks in the country in co-financing and adding synergy to their operations," SIDBI chairman and managing director V K Chopra said. Bureau Report