Banks sanction ₹1 lakh-cr. loans to 30 lakh MSMEs

‘₹45,860 crore disbursed till June 26’

The Finance Ministry on Tuesday said banks have sanctioned more than ₹1 lakh-crore loans under the ₹3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector reeling under COVID-19-induced economic slowdown.

As much as ₹45,860 crore was disbursed under the 100% ECLGS for the micro, small and medium enterprises (MSMEs) till June 26, it said.

The scheme is the biggest fiscal component of the ₹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 the 12 public sector banks (PSBs), 20 private sector banks and eight 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 MSME units and other businesses as they restart operations post the lockdown, it said.

PSBs have sanctioned loans worth ₹57,525.47 crore whereas the private sector lenders have sanctioned ₹44,335.52 crore under the ECLGS, which started on June 1, it said.

As on June 26, the PSBs have disbursed ₹29,232 crore and private sector peers ₹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 had sanctioned ₹19,593 crore and disbursed ₹12,026 crore as on June 26. It is followed by Bank of Baroda with sanctions at ₹7,273 crore and disbursement at ₹2,695 crore.

State-wise, business units of Maharashtra have got the highest cumulative sanction of ₹6,179 crore from banks, while disbursement was to the tune of ₹2,774 crore at the end of June 26.

Source: Read Full Article