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Credit disbursement: Banks face pressure to avoid large-scale slippages

Public sector bank executives point out that banks understand the need to provide critical support to borrowers hit by the lockdown, imposed to contain the spread of Covid-19.

Mudra, loans, banks, employment, jobs
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Banks are supposed to provide loan disbursal figures to the finance ministry at frequent intervals. This has created pressure at the senior level, said a senior executive with a south-based public sector bank.

Abhijit Lele Mumbai
Pressure is building on bankers to extend loans and follow up on overdue instalments to avoid large-scale slippages by the end of the June quarter.
 
Public sector bank executives point out that banks understand the need to provide critical support to borrowers hit by the lockdown, imposed to contain the spread of Covid-19.
 
They are giving priority to extending credit for meeting borrowers regular expenses. While extending credit, banks want to ensure that borrowers follow norms. For loan disbursement, it is tough to assess end usage during lockdown without inspection.

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First Published: Apr 28 2020 | 12:37 AM IST

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