Banks Sanction Over Rs 60,000 Crore Under ECLGS 5.0 In Q1 FY27

New Delhi, Jul 23 (KNN) Banks have sanctioned more than Rs 60,000 crore under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 during the April-June quarter of FY27, with public and private sector lenders extending credit to businesses affected by disruptions arising from the West Asia conflict.

Launched in May 2026, ECLGS 5.0 aims to provide government-backed credit support to stressed sectors, including micro, small and medium enterprises (MSMEs), exporters, logistics, manufacturing and aviation. MSMEs have emerged as the primary beneficiaries under the scheme.

PNB, HDFC Bank Lead Sanctions
Punjab National Bank (PNB) has sanctioned the highest amount under the scheme so far, approving Rs 12,345 crore in the first quarter. The bank said it received around 20,000 applications and was eligible to disburse up to Rs 30,000 crore, reported Money Control.

Canara Bank has sanctioned around Rs 7,000 crore under ECLGS 5.0 after receiving nearly 68,000 applications. The bank said it sees potential to disburse up to Rs 20,000 crore under the scheme.

Among private lenders, HDFC Bank has sanctioned around Rs 14,000 crore during the June quarter, while Axis Bank has disbursed about Rs 10,000 crore. Kotak Mahindra Bank has sanctioned around Rs 3,000 crore.

Several Major Banks Yet to Announce Figures
State Bank of India and Bank of Baroda are yet to disclose their ECLGS 5.0 disbursement figures, though both have indicated healthy demand for the scheme. ICICI Bank and Yes Bank have also not announced their sanction figures.

Mid-Sized Banks Also See Strong Participation
Other lenders reporting significant sanctions include Indian Bank with around Rs 5,000 crore, Central Bank of India with approximately Rs 4,500 crore, and Indian Overseas Bank with around Rs 2,600 crore.

Among mid-sized private banks, Federal Bank has sanctioned nearly Rs 2,000 crore, while RBL Bank has disbursed around Rs 200 crore and Karur Vysya Bank has sanctioned nearly Rs 75 crore.

The latest sanctions indicate strong uptake of the scheme across the banking sector as lenders continue to provide liquidity support to businesses facing external economic disruptions.

(KNN Bureau)