Public Sector Banks sanction loans worth Rs 5.66 lakh cr for more than 41 lakh accounts during March-April

Finance Minister Nirmala Sitharaman on Thursday said, the "Economy is poised to recover!" as the public sector banks (PSBs) have sanctioned loans worth Rs 5.66 lakh crore for more than 41 lakh 81 thousand accounts during March-April this year. The statement comes at a time when the announcement of the expected economic package is being delayed as it is being readied by the centre.

In a series of tweets, Office of Finance Minister Nirmala Sitharaman said, these borrowers are from MSME, Retail, Agriculture and Corporate sectors, waiting for disbursal of the fund. These funds will be disbursed soon after the lockdown is lifted.

For MSMEs and others, pre-approved Emergency credit lines and working capital enhancements are being prioritised by Public Sector Banks. More than 27 lakh customers have contacted from March 20, 2020, and 2.37 lakh cases have been sanctioned loans worth Rs 26,500 crore.

Funds worth Rs 1.08 lakh crore, inclusive of TLTRO funds, have been sanctioned to non-banking financial companies (NBFCs) and housing finance companies (HFCs). The funds were sanctioned to ensure the credit flow to NBFCs and HFC ensuring business stability and continuity going forward.

Public Sector Banks (PSBs) complemented RBI on loan moratorium. Their effective communication and proactive actions ensured that over 3.2 crore accounts availed three-month moratorium. Quick query redressals allayed customer concerns and ensured responsible banking amid lockdown.

In the case of non-banking financial companies (NBFCs) and housing finance companies (HFCs), PSBs have sanctioned Rs 77,383 crore between March 1 and May 4, 2020. Inclusive of TLTRO funds, extended total financing of Rs. 1.08 lakh crore, ensuring business stability & continuity going forward.