Banks lend Rs 782cr to MSMEs in first four months

The banks in Orissa provided Rs 782.32 crore loan to the micro, small and medium enterprises (MSMEs) during the first four months of the current fiscal.

This includes Rs 600.43 crore working capital loan to the new units and Rs 181.89 crore loan to the existing MSME units. Working capital loans amounting to Rs 285.94 crore were sanctioned in July this year, official sources said.

Similarly, the banks sanctioned Rs 314.23 crore automobile loans during Apr-July including Rs 92.78 crore in July this year. They also provided Rs 284.72 crore housing loans to 5878 persons during this period.

Sources said, the trends of credit flow to the MSME, housing and automobile sector was reviewed in the special State Level Bankers Committee (SLBC) meeting held recently.

As per the figures compiled by SLBC, there were 2449 sick units in the small scale sector involving loan of Rs 94.9 crore. This includes 225 units which are viable and 2224 units which cannot be revived.

Out of the sick units, 210 were financed under ‘nursing scheme’ amounting to Rs 27.02 crore. Similarly, 790 units having an outstanding of Rs 6.87 crore were found to be non-existent. As suggested by Khadi and Village Industries Commission (KVIC), the banks were asked to disburse the first installments of loans which were sanctioned under the Prime Minister Employment Guarantee Programme (PMEGP) by the end of August.