PSBs Offer Nearly INR 21K Crore to MSME Under ECLGS

In a bid to help MSME, the Indian government has released a financial Package recently. Under this package, the government had asked public sector banks and other financial institutions to grant collateral free loans to corporations. The move was taken to give financial support to the businesses that are facing a liquidity crunch. 

The Finance Ministry lately proclaimed that public sector banks (PSBs) have together rendered INR 21,028.55 crore under the INR 3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME segment that is badly affected by Corona-led lockdown, reported The Economic Times. 

According to the Finance Ministry, PSB have disbursed worth INR 40,416 under the 100 per cent ECLGS for MSMEs since June 1. The scheme is an important part of the INR 20 lakh crore 'Self-Reliant India Mission' package that was pronounced by the Finance Minister, Nirmala Sitharaman in the previous month. 

"As of 16 June 2020, #PSBs have sanctioned loans worth INR 36,486.82 crore under the 100 per cent Emergency Credit Line Guarantee Scheme, out of which INR 18,306.49 crore has already been disbursed," Nirmala Sitharaman tweeted on her official Twitter account.

                                                                 (Source:Twitter)

Loans Disbursed to the MSME Sector 

The Finance Ministry in its latest tweet released data of PSBs disbursing the loans and also state-wise ECGLS report. According to the figures, business organisations based in Gujarat have got cumulative loan sanctions stood at INR 4,156 crore whereas disbursements made were INR 1,657 crore till June 18. 

Maharashtra is second with a sanction of INR 4,009.46 crore, with disbursement of INR 1,735 crore.

According to the latest tweet, State Bank of India, which is a PSB, has sanctioned INR 15,950.49 crore and disbursed INR 10,667.29 crore till June 18.

                                                              (Source:Twitter)

Bank of Baroda stands second in the row permitting INR 4,986.61 crore while cumulative disbursement was at INR 1,527.32 crore. In contrast with this, Punjab National Bank stands third PSB with cumulative sanction at INR 4,270.74 crore and cumulative disbursement at INR 1,366.57 crore as on June 18. 

While Canara Bank is fourth in the row with cumulative sanction INR 3,982.60 crore and cumulative disbursement INR 1,954.44 crore.