: Banks sanctions to MSMEs inch to Rs 1.23 lakh cr under credit guarantee scheme #FinanceIndia #StockMarketNEWS Banks sanctions to MSMEs inch to Rs 1.23 lakh cr under credit guarantee scheme New Delhi,

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Banks sanctions to MSMEs inch to Rs 1.23 lakh cr under credit guarantee scheme #FinanceIndia #StockMarketNEWS
Banks sanctions to MSMEs inch to Rs 1.23 lakh cr under credit guarantee scheme New Delhi, July 17 (KNN) Banks have sanctioned loans of about Rs 1.23 lakh crore to COVID hit Micro, Small and Medium Enterprises (MSME) sector under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS), said the Finance Ministry.

However, disbursements against this stood at Rs 68,311 crore till July 15 under the 100 per cent ECLGS for MSMEs.

“As of 15 July 2020, the total amount sanctioned under the 100 per cent Emergency Credit Line Guarantee Scheme by #PSBs and private banks stands at Rs 1,23,345.16 crore, of which Rs 68,311.55 crore has already been disbursed,” the finance minister said in a tweet on Thursday.

The latest numbers on ECLGS, as released by the finance ministry, comprise disbursements by all 12 public sector banks (PSBs), 22 private sector banks and 21 non-banking financial companies (NBFCs).
Under the ECLGS, the loan amounts sanctioned by PSBs increased to Rs 69,135.19 crore, of which Rs 41,819 crore has been disbursed as of July 15, she said.

At the same time, private sector banks have sanctioned Rs 54,209.97 crore and disbursed Rs 26,492 crore.

“Compared to 9 July 2020, there is an increase of Rs 3,245.79 crore in the cumulative amount of loans sanctioned & an increase of Rs 6,323.65 crore in the cumulative amount of loans disbursed, by both #PSBs and private sector banks combined as on 15 July 2020,” Sitharaman added.

The country’s largest lender SBI has sanctioned Rs 20,910 crore of loans and disbursed Rs 14,362 crore. It is followed by Punjab National Bank, which has sanctioned Rs 9,121 crore. However, its disbursements stood at Rs 4,032 crore as of July 15.

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.