Lend Rs 56k cr more, govt tells PSU banks

There is good news in store for companies and others as the government has directed public-sector banks to lend Rs 56,000 crore, over and above their existing disbursement target, in the next three months.

Beyond March, the banks would be asked to further step up lending as the government plans to infuse Rs 20,000 crore over the next two financial years, enhancing the loan disbursement capacity of banks.

“We have three more months ... We have enhanced the original (banks’ credit disbursal) plans by Rs 56,000 crore. So we are planning to provide, in addition to the earlier plans, over Rs 56,000 crore,” according to Finance Secretary Arun Ramanathan.

The additional lending would be around 20 per cent of the credit disbursed by all commercial banks in the first nine months of the current financial year. Banks have disbursed about Rs 2,75,000 crore to the non-food sector up to December 19.

The target enhancement will benefit all sectors, including real estate, corporate, small and medium enterprises and non-banking financial companies, said Oriental Bank of Commerce Executive Director S C Sinha.