Coronavirus lockdown: PSBs have sanctioned loans worth Rs 42,000 cr to MSMEs, corporates so far

Public sector banks have sanctioned loans worth Rs 42,000 crore to the MSME sector and corporates since the start of the lockdown.

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With the lockdown coming into effect from March 25, state-owned banks opened 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.

Till now, the banks have sanctioned Rs 27,426 crore worth loans to MSMEs under COVID-19 relief scheme to their existing borrowers, as per data collated by the government.

In addition, corporates with deep pockets have availed Rs 14,735 crore loan, nearly half of MSMEs'.

In terms of numbers, about 10 lakh MSMEs and 6,428 corporates have availed the benefit so far.

At the same time, many MSMEs and corporates have also availed the three-month moratorium offered by banks as per the Reserve Bank of India guidelines.

On Thursday, Finance Minister Nirmala Sitharaman said as many as 3.2 crore borrowers have taken advantage of the three-month moratorium scheme on repayment of loans announced by the Reserve Bank to help people tide over the problems created on account of disruption in business activities due to the lockdown.

"PSBs complemented RBI on loan moratorium. Their effective communication & proactive actions ensured that over 3.2 cr. a/c availed 3-month moratorium. Quick query redressals allayed customer concerns. Ensuring responsible banking amid #lockdown," she had tweeted.

She also said state-owned banks have sanctioned loans worth Rs 5.66 lakh crore to borrowers during March and April, and disbursement will start soon after the lockdown is lifted.

"During March-April 2020, PSBs sanctioned loans worth Rs 5.66 lakh cr for more than 41.81 lakh accounts. These borrowers are from MSME, Retail, Agriculture & Corporate sectors, waiting for disbursal soon after #lockdown lifts. Economy poised to recover!," Sitharaman had said in another tweet.

She also said the banks sanctioned loans worth Rs 77,383 crore between March 1 and May 4 to provide sustained credit flow to non-banking finance companies and housing finance companies.

Besides, under Targeted Long Term Repo Operations (TLTROs), total financing of Rs 1.08 lakh crore was extended, "ensuring business stability and continuity going forward", she had said.