Banks sanction over Rs 1 lakh crore loans to 30 lakh MSMEs under credit guarantee scheme
   Date :01-Jul-2020

MSMEs_1  H x W:
 
 
Business Bureau :
 
The finance ministry on Tuesday said banks have sanctioned over Rs 1 lakh crore loans under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector reeling under coronavirus-induced economic slowdown. While, Rs 45,860 crore is disbursed under the 100 per cent ECLGS for the micro, small and medium enterprises (MSMEs) till June 26, it said. The scheme is the biggest fiscal component of the Rs 20-lakh crore ‘Aatmanirbhar Bharat Abhiyan” package announced by Finance Minister Nirmala Sitharaman last month.
 
The latest number on ECLGS, as released by the Finance Ministry, comprises all 12 public sector banks (PSBs), 20 private sector banks and 8 NBFCs. “Under the 100 per cent ECLGS backed by a government guarantee, banks from public and private sectors have sanctioned loans worth over Rs 1 lakh crore as of June 26, 2020, of which more than Rs 45,000 crore has already been disbursed,” the finance ministry said in a statement.
 
This would help more than 30 lakh units of MSMEs and other businesses restart their businesses post the lockdown, it said. PSBs have sanctioned loans of Rs 57,525.47 crore, whereas private sector lenders have sanctioned Rs 44,335.52 crore under ECLGS, which started on June 1, it said. As on June 26, public sector banks have disbursed Rs 29,232 crore and private sector peers Rs 16,628 crore. The top lenders under the scheme are State Bank of India, Bank of Baroda, Punjab National Bank, Canara Bank and HDFC Bank, it added. Market leader SBI has sanctioned Rs 19,593 crore and disbursed Rs 12,026 crore as on June 26. It is followed by Bank ofBaroda with a sanction of Rs 7,273 crore and disbursement at Rs 2,695 crore. The second largest lender Punjab National Bank was at the third spot, as per the data, with the cumulative sanction of Rs 7,188 crore
 
. Its disbursement was nearly one-third at Rs 2,125 crore. State-wise, business units of Maharashtra have got the highest cumulative sanction of Rs 6,179 crore from banks, while disbursement was to the tune of Rs 2,774 crore at the end of June 26. It is followed by Uttar Pradesh with a sanction of Rs 5,646 crore, with disbursement of Rs 2,861 crore. On May 21, the Cabinet had approved additional funding of up to Rs 3 lakh crore at a concessional rate of 9.25 per cent through ECLGS for the MSME sector.