Public sector banks sanctioned Rs 5.66 trn in loans during March-April: FM

During March-April 2020, PSBs sanctioned loans worth Rs 5.66 lakh cr for more than 41.81 lakh accounts

Finance Minister Nirmala Sitharaman said on Thursday that public sector banks have sanctioned loans worth Rs 5.66 trillion during March-April and the disbursement will start soon after the lockdown is lifted, leading to economic recovery.

During March-April 2020, PSBs sanctioned loans worth Rs 5.66 trillion for more than 4.18 mn accounts. These borrowers are from MSME, retail, agriculture & corporate sectors, waiting for disbursal soon after lockdown lifts. Economy poised to recover! Sitharaman said in a tweet.

She further said that state-owned banks implemented the moratorium announced by the RBI on repayment of loans.

"PSBs complemented RBI on loan moratorium. Their effective communication & proactive actions ensured that over 3.2 cr. a/c availed 3-month moratorium. Quick query redressals allayed customer concerns. Ensuring responsible banking amid #lockdown, she tweeted.

Sitharaman also said public sector banks (PSBs) sanctioned loans worth Rs 77,383 crore between March 1 and May 4 to provide sustained credit flow to NBFCs and housing finance companies.

Besides, under the Targeted Long Term Repo Operations (TLTROs), total financing of Rs 1.08 trillion was extended "ensuring business stability and continuity going forward", she added.

For MSMEs and others, pre-approved emergency credit lines and working capital enhancements are being prioritised by PSBs.

"...More than 27 lakh customers contacted from March 20 and 237,000 cases sanctioned loans worth Rs 26,500 cr. A work in progress," she said in another tweet.

India imposed the lockdown from March 25 for 21 days in the first phase and later extended it two times until May 17 to check the spread of coronavirus.