Finance Minister Nirmala Sitharaman on Tuesday said the public sector banks (PSB) sanctioned Rs 5.95 crore in just over two months, between March 1 and May 8, to over 46.74 lakh accounts. The borrowers for the sanctioned loans include MSMEs, retailers, farmers and corporate sectors.
She had earlier said that higher bank sanctions is indicative that the Indian economy is poised to recover from the recent crisis brought upon by the coronavirus pandemic.
“PSBs sanctioned loans worth Rs 5.95 lakh crore for more than 46.74 lakh accounts from the MSME, Retail, Agriculture & Corporate sectors between March 1 and May 8, 2020,” the tweet from Nirmala Sitharaman’s office said.
“Total financing worth Rs 1.18 lakh crore was provided to NBFCs,” it added.
Besides, loan sanctions to various industrial sectors, the government is also ensuring that the current coronavirus outbreak does not result in a 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 60,000 crore in credit that had more than doubled in just four days.
“Between March 20 and May 8, Public Sector Banks contacted 97 percent of borrowers eligible for emergency credit lines & working capital enhancements and sanctioned loans worth Rs 65,879 crore, up from the Rs 26,500 crore sanctioned as of May 4,” said another tweet from the office of the FM.
Government’s is ensuring that present coronavirus pandemic is prevented from making a serious dent on the Indian economy. It this wants that investments should not be stopped and banks should ensure that all eligible borrowers get sufficient funds.