Banks lend Rs 63,574 crore to 1.38 mn borrowers via outreach programme

Both public and private banks have extended credit through 10,580 camps under the programme. Loans are over and above those under various central government loan guarantee schemes

Banks have sanctioned credit worth Rs 63,574 crore to 1.38 million borrowers through the credit outreach programme between October 16-31. The Credit outreach programme has been organised to improve credit access during the festive season, as the economy recovers from the impact of Covid-19.

Both public and private sector lenders have extended credit through 10,580 camps under the nationwide credit outreach programme. These loans are over and above those sanctioned and disbursed under various central government loan guarantee schemes such as the Emergency Credit Line Guarantee Scheme.

India’s largest lender State Bank of India (SBI) sanctioned loans to 320,000 borrowers worth Rs 14,461 crore. This was followed by HDFC Bank that sanctioned loans of Rs 8,421 crore to 51,806 borrowers, and Bank of Baroda sanctioning Rs 5,555 crore worth loans to 120,000 borrowers. Regional rural banks extended credit worth Rs 5,399 crore to 260,000 borrowers.

Loans of 8,655 crore were sanctioned in Uttar Pradesh to 188,000 borrowers followed by Gujarat where credit worth Rs 8,503 crore was sanctioned to 61,139 borrowers. Borrowers in Rajasthan, Andhra Pradesh and Karnataka received credit worth Rs 7,467 crore, Rs 6,282 crore, and Rs 5,659 crore, respectively.

Most loans by value were sanctioned in the category of business loans worth 21,687 crore. Such loans were extended to 320,000 borrowers. This was followed by agricultural loans worth Rs 16,734 crore (710,000 borrowers), and housing loans worth Rs 8,994 crore (41,226 borrowers). Personal and consumer durable loans worth Rs 7,122 crore, and vehicle loans worth Rs 4,562 crore were sanctioned during the period.
 

During the review of PSBs organised in August, Finance Minister Nirmala Sitharaman had asked lenders to conduct credit outreach programme in October to support revival of economic growth.

The Centre had also asked PSBs to aggressively target financial inclusion, expand pension and insurance coverage and, at the same time, use financial technology (fintech) to extend credit to borrowers during the festive season through co-lending arrangements.