PSBs sanctioned loans worth Rs 6.45 trn in lockdown between Mar 1-May 15




State-owned banks have sanctioned about Rs 6.45 trillion worth loans to various sectors including Micro Small and Medium Enterprises (MSME), agriculture and retail between March 1 and May 15 when businesses were reeling under the impact of the Covid-19 crisis.

Loans sanctioned at the end of May 8 stood at Rs 5.95 trillion.





“Loans worth over Rs 6.45 trillion were sanctioned by PSBs during March 1 May 15 for 54.96 lakh accounts from MSME, Retail, Agriculture & Corporate sectors; A notable increase compared to the Rs 5.95 trillion sanctioned as of May 8,” Finance Minister Nirmala Sitharaman said in a tweet.

“Public Sector Banks sanctioned over Rs 1.03 trillion as emergency credit lines & working capital enhancements in the period March 20 to May 15, which is a substantial increase over the Rs 65,879 crore that had been sanctioned up to May 8,” she said.

State-owned banks launched an emergency credit line to provide funds to its existing MSME and corporate borrowers in the last week of March, soon after the lockdown was announced.
ALSO READ: Govt accounts for nearly 94% of Rs 1,819 cr dues payable to MSMEs: CII poll

Under the scheme, the banks provide an additional line of credit of 10 per cent of the existing fund based on working capital limits, subject to a maximum of Rs 200 crore.



RBI had allowed a three-month moratorium on repayment of all term loans due between March 1, 2020 and May 31, 2020.

Besides, banks have offered a 3-month moratorium on loan repayment till May 31 as per the RBI guidelines. With the government extending the nationwide lockdown up to May 31, the Reserve Bank of India (RBI) is likely to extend the moratorium on repayment of loans for three more months, according to experts.

It is high time that businesses are given at least one-quarter of business operations before asking them to start addressing the loan obligations, said Indiforward’s Executive Director Abhishek Chauhan.

An additional three-month moratorium by RBI is absolutely necessary both in the interest of businesses and the financial sector, he added.

In March, RBI had allowed a three-month moratorium on repayment of all term loans due between March 1, 2020 and May 31, 2020.

“With the lockdown now extended up to May 31, we expect RBI to extend the moratorium by three months more,” SBI’s research report Ecowrap said.

Recent Articles

Baleno crosses 8 lakh cumulative sales milestone: Maruti Suzuki

The nation’s largest carmaker Maruti Suzuki India on Monday mentioned its premium hatchback Baleno has crossed the eight lakh cumulative gross sales milestone...

Business News | Stock and Share Market News

By Market Capitalisation. Internet Gross sales. Internet Revenue. Complete Property. Excise. Different Earnings. Uncooked Supplies. Energy & Gas. Worker Value. PBDIT. Curiosity. Tax. EPS. Investments. Sundry Debtors. Money/Financial institution. Stock. Debt. Contingent Liabilities. Display screen Crit Abrasives Aerospace & Defence Agriculture Air Conditioners Airways Aluminium & Aluminium Merchandise Amusement Parks/Recreation/Membership Aquaculture Auto Ancillaries Auto...

Appeals Court Says Uber and Lyft Must Treat California Drivers as Employees

OAKLAND, Calif. — Uber and Lyft should deal with their California drivers as workers, offering them with the advantages and wages they're entitled...

Amazon wins interim relief; Future-Reliance deal put on hold

Amazon believes Future Group violated the contract by getting into right into a take care of rival Reliance. Amazon on October 25 gained an...

Business News | Stock and Share Market News

By Market Capitalisation. Web Gross sales. Web Revenue. Whole Belongings. Excise. Different Earnings. Uncooked Supplies. Energy & Gasoline. Worker Value. PBDIT. Curiosity. Tax. EPS. Investments. Sundry Debtors. Money/Financial institution. Stock. Debt. Contingent Liabilities. Display screen Crit Abrasives Aerospace & Defence Agriculture Air Conditioners Airways Aluminium & Aluminium Merchandise Amusement Parks/Recreation/Membership Aquaculture Auto Ancillaries Auto...

Related Stories

Leave A Reply

Please enter your comment!
Please enter your name here

Stay on op - Ge the daily news in your inbox