PSU banks disbursed around Rs 2.5 trillion in loans during October: Govt

Of the Rs 2.52 trillion, Rs 1.06 trillion was disbursed towards new term loans, while Rs 46,800 crore was towards new working capital loans

State-owned banks disbursed around Rs 2.52 trillion worth of loans in October through loan melas, camps and other outreach initiatives, a finance ministry statement said on Thursday.

This follows an announcement by Finance Minister Nirmala Sitharaman in September that banks would conduct such customer outreach initiatives as the government looks for various ways to boost liquidity and investment, while facing the worst slowdown in more than half a decade, in real terms.

However, as the information provided by the ministry showed, almost half of the loans disbursed were to corporate entities — at around Rs 1.23 trillion — and only