Public sector bank executives said the three sectors have been hit badly and are crucial for ensuring jobs. The lenders said credit support for units in these sectors was "crucial in restarting economic activity". All public sectors
have sanctioned emergency working capital credit lines (10 per cent of existing exposure) to companies across these sectors, they said.
Central Bank of India Managing Director (MD) and Chief Executive Officer (CEO) Pallav Mohapatra said banks
have conveyed that they have begun to disburse money in sanctioned emergency lines. “It will gather further momentum as lockdown
is lifted and borrower’s complete documentation.”
A K Goel, MD & CEO, UCO Bank, said: “Since March, banks
have extended Rs 6 trillion to all the sectors. UCO Bank has sanctioned close to Rs 15,000 crore. We are also outreaching clients for credit.”
In the meeting, the FM clarified on a scheme that intends to give a Rs 3-trillion guarantee for credit to MSMEs. “The government has said it would pay up Rs 3 trillion under guarantees if all loans covered under the scheme default. The rules outlined in the scheme have to be followed,” said another banker.
Padmaja Chunduru, MD & CEO, Indian Bank, said: “The FM has emphasised on quick disbursal of additional loans to MSMEs, to simplify process, formats and documentation. Banks have decided to focus also on tier-II and -III towns to ensure needy MSMEs get the assistance.”
(With inputs from Abhijit Lele)
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