Public sector banks sanction loans worth 6 lakh cr in two months

NEW DELHI: Public sector banks (PSBs) have sanctioned loans price Rs 5.95 lakh crore within the final two months to numerous sectors, together with MSME, agriculture and company, hit onerous by COVID-19-induced nationwide lockdown.

Non-bank finance firms (NBFCs) have obtained Rs 1.18 lakh crore from these banks throughout the interval between March 1 and May 8.

“PSBs sanctioned loans worth Rs 5.95 lakh crore for more than 46.74 lakh accounts from the MSME, Retail, Agriculture & Corporate sectors between March 1 and May 8, 2020. Total financing worth Rs 1.18 lakh crore was provided to NBFCs,” Finance Minister Nirmala Sitharaman stated in a tweet on Tuesday.

With the lockdown coming into impact from March 25, state-owned banks opened an extra line of credit score of 10 per cent of the present fund based mostly on working capital limits, topic to a most of Rs 200 crore.

“Between March 20 – May 8, Public Sector Banks contacted 97 per cent of borrowers eligible for emergency credit lines & working capital enhancements and sanctioned loans worth Rs 65,879 crore, up from the Rs 26,500 crore sanctioned as of May 4,” Sitharaman stated in one other tweet.

The central authorities had imposed a 21-day lockdown from March 25 to examine the unfold of coronavirus.

The lockdown has been prolonged until May 17 with some relaxations.

Prime Minister Narendra Modi goes to handle the nation later as we speak which will give route to future plan of action to cope with the pandemic.