PSB loan disbursal picks up pace, rises to over Rs 29K crore
New Delhi: Country's largest banking institution State Bank of India leads the pack of public sector banks in disbursing emergency loans to the industry and help improve investment climate in the country amidst Covid-19 pandemic.
The bank has cumulatively disbursed loans to the tune of Rs 8,300.98 crore to 76,947 corporate accounts across the country up to June 11. The loans have been disbursed under the Rs 3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) announced by the government for meeting the liquidity needs of the MSME sector in the present crisis.
The SBI's loan disbursal accounts for over 55 per cent of Rs 14,690.84 crore disbursed by 12 PSBs under the scheme up to June 9. The disbursals have picked up pace lately as the amount for MSMEs stood at Rs 599.12 crore just a day back on June 8.
In a tweet, the office of finance minister Nirmala Sitharaman said: "As of 11 June 2020, #PSBs have sanctioned loans worth Rs 29,490.81 crore under the 100 per cent Emergency Credit Line Guarantee Scheme, out of which Rs 14,690.84 crore has already been disbursed."
As per the finance ministry data, loans have been disbursed to 3,75,087 accounts under ECLGS showing that a wide spectrum of industries are taking advantage of the scheme to meet their immediate liquidity needs.
Apart from SBI, Union Bank of India and Canara Bank have sanctioned over Rs 1,000 crore worth of loans to MSME segment. Also, Punjab National Bank (PNB), Bank of Baroda and Bank of India have sanctioned over Rs 700 crore worth of loans. Though disbursal from Central Bank of India is relatively lower as it has distributed the money to large number of accounts at over 68,277.
Bulk of the loan sanctions has gone to industry in the southern states while industrial sectors in Maharashtra, Uttar Pradesh, Rajasthan and Gujarat have also received high quantum of loans from PSBs.
In all PSBs have sanctioned loan under ECLGS to over 7.5 lakh accounts so far while disbursals have been made in case of over 3.75 lakh accounts. The ECLGS scheme is the biggest fiscal component of the Rs 20-lakh crore Self-Reliant India Mission package announced by Finance Minister Nirmala Sitharaman last month.