MAURITIAN BANKS THINK BEYOND HOME COMFORTS
encouraged by the new outlets for liquidity , such as infrastructure projects and other developments . MCB ’ s Mr Gufflet says : “ The current expansion of our loan portfolio is an encouraging sign , which is being confirmed by our pipeline of projects . The latter should be further boosted in the periods ahead and , thus , further support our revenue generation if announced sizeable domestic public and private investment projects are executed as planned .”
SME opportunities
The multiplier effects of this project spending are expected to stimulate new opportunities for small and medium-sized enterprises ( SMEs ). Indeed , under the government ’ s economic development agenda , the authorities are promoting SMEs as a means of stimulating the economy and driving the next stage of the country ' s development . The banks , in turn , are looking to bolster their SME offerings to capitalise on this opportunity . SBM , for example , is supporting these businesses as they expand their activities across mainland Africa . Mr Li Kwong Wing notes that exporting into the Common Market for Eastern and Southern Africa will be vital for Mauritian SMEs in their hunt for higher growth opportunities . To support this objective , SBM offers trade insurance cover , as well as the discounting of receivables , among other services , to its SME customers . “ SBM is now trying to revitalise its operations in the SME sector in order to accompany the growth in the regional market ,” says Mr Li Kwong Wing .
MauBank moves in
Meanwhile , MauBank , which was created through the merger of Mauritius Post and Cooperative Bank ( MPCB ) and National Commercial Bank ( NCB ) in early 2016 , is benefiting from its historical know-how in the SME segment . About one-third of its total assets are geared towards SMEs , of which it has 6000 customers , thanks to MPCB ’ s strong offering in this business line .
Sridhar Nagarajan , chief executive
SRIDHAR NAGARAJAN CEO , MauBank
of MauBank , says : “ Our bread and butter is SMEs . Our team knows how to work with SMEs because we are a truly local bank . We have started adopting new techniques for SMEs , including clustering industries for appraisal . For example , we are very quick in assessing and understanding plantations based on aggregated knowledge of the industry .”
MauBank hit the headlines in 2016 for turning in a profit just a few months into its existence . Mr Nagarajan points to the bank ’ s dynamic board and its ability to swiftly execute credit decisions as two factors that have helped to
52 Business Times Africa | 2017