Looking at Double-Digit Growth for SME Banking in India

India is one of the largest small and medium enterprise (SME) hubs for London-headquartered Standard Chartered (StanC) Bank. Xie Wen, global head of SME banking at StanC, speaks to Subrata Panda and Manojit Saha in Mumbai about the bank's SME portfolio in the country, growth prospects, the impact of tariff-related uncertainties, and how the bank has supported its SME clients in navigating this challenging period. Edited excerpts:

- Xie Wen, global head of SME banking at StanC, speaks to Subrata Panda and Manojit Saha

How much of the SME banking revenues come from India?

In terms of revenue, it is 18-20 percent. But in terms of assets, it is close to 40 percent. It is the biggest in terms of SME assets. India is a big market for StanC, and it is also its fastest-growing market for the SME segment, as India is the fastest-growing economy in the world.

In India, which are the business segments in SME banking where you are seeing maximum growth?

Trader working capital. We are growing in double digits. SMEs are usually part of the supply chain of multinational and larger corporations. The working capital loan helps them manage their operating cycle and cash flow much better. So we do see that, with business activity and the economy growing, the need for working capital loans is also growing.

Which are the sectors among SMEs that you are more bullish on?

We are actually quite diversified across different segments—trading, manufacturing, services, and IT. But I see that in India, manufacturing is certainly growing, and services continue to be a very important and big driver of the economy.

How is StanC affected by the increasing stress in unsecured lending to businesses and SMEs?