Banks disburse 56,091 cr to MSMEs under credit guarantee scheme
New Delhi, July 8 (KNN) Narendra Modi led centre government has geared up to support COVID hit Micro, Small and Medium Enterprises (MSMEs) by providing cash-aid under Emergency Credit Line Guarantee Scheme (ECLGS).
According to the latest data shared by the Finance minister Nirmala Sitharaman’s office, both private and public sector banks have Rs 56,091.18 crore as of July 4.
''As of 4 July 2020, the total amount sanctioned under the 100% Emergency Credit Line Guarantee Scheme by #PSBs and private banks stands at Rs 1,14,502.58 crore, of which Rs 56,091.18 crore has already been disbursed,'' finance minister's office tweeted.
Public sector banks had a majority share of Rs 35,578.48 crore in the amount disbursed and Rs 65,863.63 crore in the amount sanctioned as of July 4, as per the data tweeted by Sitharaman’s office. The rest was contributed by private sector banks. The amount was disbursed to 15,24,691 MSME accounts out of the sanctioned 36,28,444 accounts.
The top public sector banks lending to MSMEs under the scheme were State Bank of India (Rs 13,405.15 crore), Canara Bank (Rs 4,575.58 crore), Union Bank of India (Rs 3,359.52 crore), Bank of Baroda (Rs 3,344.01 crore), Punjab National Bank (Rs 2,595.22 crore) etc.
The credit given to MSMEs impacted due to Covid pandemic is part of Rs 20 lakh crore stimulus package announced by PM 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.