FM Sitharaman says loans to MSMEs and overall by PSBs have jumped

Source : IANS
Author : IANS
Last Updated: Tue, May 19th, 2020, 16:54:21hrs
FM Sitharaman says loans to MSMEs and overall by PSBs have jumped

New Delhi: Finance Minister Nirmala Sitharaman on Tuesday said the public sector banks (PSB) sanctioned Rs 6.45 lakh crore in two and a half months, between March 1 and May 15, to over 54.96 lakh accounts.

This is a notable increase compared to the Rs 5.95 lakh crore sanctioned as of May 8 with last Rs 50,000 crore being sanctioned in just the preceding week.

The Finance Minister had earlier said that higher bank sanctions is indicative that the Indian economy is poised to recover from the recent crisis brought upon it by the coronavirus pandemic.

In a tweet, the office of Sitharaman said that the borrowers for the sanctioned loans include MSMEs, retailers, farmers and corporate sectors.

Also Read: Has MSME loans really solved the big problem?

"Loans worth over Rs 6.45 lakh crore were sanctioned by PSBs during March 1 - May 15 for 54.96 lakh accounts from MSME, Retail, Agriculture & Corporate sectors; A notable increase compared to the Rs 5.95 lakh crore sanctioned as of May 8," the tweet from Nirmala Sitharaman's office said.

Besides, loan sanctions to various industrial sectors, government is also en suring that the current coronavirus outbreak does not result in liquidity crisis for businesses.

In this regard, almost all eligible borrowers for emergency credit lines and working capital have been contacted by banks and sanctioned over Rs 1 lakh crore in credit that has jumped 55 per cent last week between May 8-15.

Also Read: In-Depth Coronavirus Coverage

"Public Sector Banks sanctioned over Rs 1.03 lakh crore as emergency credit lines & working capital enhancements in the period March 20 to May 1 5, which is a substantial increase over the Rs 65,879 crore that had been sanctioned up to May 8," said another tweet from the office of the FM.

Government is ensuring that present coronavirus pandemic is prevented from making a serious dent on the Indian economy. It wants that investments should not be stopped and banks should ensure that all eligible borrowers get sufficient funds.

Image: Finance Minister Nirmala Sitharaman announcing the last tranche of measures on Sunday, 17th May. Credit: Press Information Bureau.

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