2836 MSME loan accounts restructured

Following the directive of the Reserve Bank of India (RBI), the banks operating in Orissa have restructured about 2836 MSME loan accounts involving Rs 342.75 crore loan till the end of February 2009.

This is about 80.18 percent (number wise) and about 168.64 percent (volume wise) higher than the previous month. The restructuring process was taken up to enable the small and medium enterprises in Orissa to face the impact of the economic slowdown in the economy.

Among the public sector banks, the Union Bank restructured highest number of 1636 accounts involving an amount of Rs 11.39 crore loan. However, in value terms, the IDBI Bank restructured 15 accounts involving Rs 146.56 crore loan. The Regional Rural Banks (RRBs) also restructured 12 accounts involving Rs 28 lakh, sources said.

After the announcement of special package for the MSMEs and the housing sector by the Indian Bank Association (IBA), the banks operating in the state sanctioned Rs 2193.26 crore working capital loans to the new and the existing micro, small and medium enterprises (MSMEs). This is about 5.05 percent higher than the Rs 2087.69 crore loans sanctioned till the previous month. While working capital loans of Rs 84.46 crore were sanctioned by the banks for the new MSME units, Rs 70.45 crore was sanctioned for the existing units during February.

The banks advanced Rs 686.83 crore housing loan to 19717 persons during the current fiscal. In February alone the lending to the housing sector was Rs 58.07 crore involving 1202 accounts. Similarly, Rs 398.64 crore auto loan was sanctioned to 9619 persons during this time. This includes Rs 44.45 crore sanctioned in the last month.