Banks continue to struggle to achieve loan target under ECLGS scheme; touch 1.30 lakh crore mark New Delhi, July 25 (KNN) Banks continued...
Banks continue to struggle to achieve loan target under ECLGS scheme; touch 1.30 lakh crore mark
New Delhi, July 25 (KNN) Banks continued to struggle in sanctioning loans to COVID hit Micro, Small and Medium Enterprises (MSMEs) as till July 23, they have only managed to sanctioned loans worth Rs 1,30,491 crore under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) of which Rs 82,065 crore were disbursed.
According to latest numbers on the ECLGS, released by the finance ministry, comprise disbursements by all 12 public sector banks (PSBs), 22 private sector banks and 23 non-banking financial companies (NBFCs).
"As of 23 July 2020, the total amount sanctioned under the 100 per cent Emergency Credit Line Guarantee Scheme by #PSBs and private banks stands at Rs 1,30,491.79 crore, of which Rs 82,065.01 crore has already been disbursed," the Finance Minister said in a tweet on Friday.
Under the ECLGS, the loan amounts sanctioned by PSBs increased to Rs 71,818.16 crore, of which Rs 47,631.41 crore has been disbursed as of July 23, she said.
At the same time, private sector banks have sanctioned Rs 58,673 crore and disbursed Rs 34,433 crore.
"Compared to 20 July 2020, there is an increase of Rs 2,909.19 crore in the cumulative amount of loans sanctioned & an increase of Rs 4,451.95 crore in the cumulative amount of loans disbursed by both #PSBs and private sector banks combined as on 23 July 2020," Sitharaman said.
Among the banks, SBI has sanctioned the highest amount at Rs 21,027 crore of loans and disbursed Rs 15,112 crore. It is followed by Punjab National Bank, which has sanctioned Rs 9,463 crore. However, its disbursements stood at Rs 5,295 crore as of July 23.
The credit given to MSMEs impacted due to COVID pandemic is part of Rs 20 lakh crore stimulus package announced by Prime Minister Narendra Modi under the Aatmanirbhar Bharat campaign. The government had also launched the subordinate debt scheme last scheme to offer Rs 20,000 crore guarantee cover to 2 lakh MSMEs.
The scheme was introduced to help distressed MSME accounts or NPAs as on April 30, 2020.
