New Delhi: The Finance Ministry on Thursday said public sector banks have disbursed Rs 12,200.65 crore till June 9, under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector, hit hard by the coronavirus-induced lockdown.
Public Sector Banks (PSBs) have sanctioned loans worth Rs 24,260.65 crore under the 100 per cent ECLGS for the Micro, Small & Medium Enterprises (MSME) sector starting June 1.
The 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.
"As of 9 June 2020, #PSBs have sanctioned loans worth Rs 24,260.65 crore under the 100% Emergency Credit Line Guarantee Scheme, out of which Rs 12,200.65 crore have been disbursed," Nirmala Sitharaman office said in a tweet.
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As of 9 June 2020, #PSBs have sanctioned loans worth Rs 24,260.65 crore under the 100% Emergency Credit Line Guarantee Scheme, out of which Rs 12,200.65 crore have been disbursed. Here are the bank-wise and state-wise details. #AatmanirbharBharat #MSMEs pic.twitter.com/e1KEj5lVzn
— NSitharamanOffice (@nsitharamanoffc) June 11, 2020 " class="align-text-top noRightClick twitterSection" data="
">As of 9 June 2020, #PSBs have sanctioned loans worth Rs 24,260.65 crore under the 100% Emergency Credit Line Guarantee Scheme, out of which Rs 12,200.65 crore have been disbursed. Here are the bank-wise and state-wise details. #AatmanirbharBharat #MSMEs pic.twitter.com/e1KEj5lVzn
— NSitharamanOffice (@nsitharamanoffc) June 11, 2020As of 9 June 2020, #PSBs have sanctioned loans worth Rs 24,260.65 crore under the 100% Emergency Credit Line Guarantee Scheme, out of which Rs 12,200.65 crore have been disbursed. Here are the bank-wise and state-wise details. #AatmanirbharBharat #MSMEs pic.twitter.com/e1KEj5lVzn
— NSitharamanOffice (@nsitharamanoffc) June 11, 2020
Business units of Tamil Nadu have got highest cumulative sanction of Rs 2,637 crore from banks, while disbursement was to the tune of Rs 1,727 crore at the end of June 9.
It is followed by Uttar Pradesh with a sanction of Rs 2,547 crore, with disbursement of Rs 1,225 crore.
Bank wise, as per the table provided in the tweet, indicated market leader State Bank of India (SBI) has sanctioned Rs 13,363 crore, while disbursement was nearly half at Rs 7,517 crore at the end of June 9.
It is followed by third largest lender Bank of Baroda with a sanction of Rs 1,893 crore, but disbursement was at Rs 526 crore.
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Union Bank of India had better disbursement rate as against sanction of Rs 1,842 crore, the Mumbai-based lender has disbursed Rs 794 crore.
The second largest lender Punjab National Bank was somewhat a laggard, as per the data, with the cumulative sanction of Rs 1,772 crore but the disbursement was nearly one-third at Rs 656 crore at the end of June 9.
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.
Under the scheme, 100 per cent guarantee coverage will be provided by National Credit Guarantee Trustee Company (NCGTC) for additional funding of up to Rs 3 lakh crore to eligible MSMEs and interested Micro Units Development and Refinance Agency (MUDRA) borrowers, in the form of a guaranteed emergency credit line (GECL) facility.
For this purpose, a corpus of Rs 41,600 crore was provided by the government, spread over the current and next three financial years.
The scheme will be applicable to all loans sanctioned under GECL facility during the period from the date of announcement of the scheme to October 31 or till an amount of Rs 3 lakh crore is sanctioned under GECL, whichever is earlier.
The main objective of the scheme is to provide an incentive to member lending institutions to increase access and enable availability of additional funding facility to MSME borrowers, in view of the economic distress caused by the COVID-19 crisis, by giving them 100 per cent guarantee for any losses suffered by them due to non-repayment of the GECL funding by borrowers.
All MSME borrower accounts with an outstanding credit of up to Rs 25 crore as on February 29, which were less than or equal to 60 days past due as on that date, ie, regular, SMA-0 and SMA-1 accounts, and with an annual turnover of up to Rs 100 crore, would be eligible for GECL funding under the scheme.
(PTI Report)
