New Delhi: Finance Minister Nirmala Sitharaman Thursday said that the Indian economy is poised to recover from the recent crisis brought upon by the coronavirus pandemic with the public sector banks (PSB) sanctioning loans worth Rs 5.6 lakh crore in just two months, March and April, to over 41 lakh accounts.
In a tweet, the office of Sitharaman said that the borrowers include MSMEs, retailers, farmers and corporate and the amounts would be disbursed once the lockdown is lifted.
“During March-April 2020, PSBs sanctioned loans worth Rs 5.66 lakh cr for more than 41.81 lakh accounts. These borrowers are from MSME, Retail, Agriculture & Corporate sectors, waiting for disbursal soon after #lockdown lifts. Economy poised to recover! @FinMinIndia @DFS_India,” the tweet said.
In a series of tweets, her office has outlined the development in terms of loans given by public sector banks and the loan moratorium allowed by the Reserve Bank of India (RBI).
Another tweet said that for MSMEs and others, pre-approved emergency credit lines and working capital enhancements are being prioritised by state-run banks. Noting that it is a work in progress, the minister said that more than 27 lakh customers contacted from March 20 and 2.37 lakh cases sanctioned loans worth Rs 26,500 crore.
Observing that the there has been smooth credit flow to non-banking finance companies (NBFC) and housing finance companies (HFC), Sitharaman’s office tweeted: “PSBs sanctioned loans worth Rs. 77,383 cr b/w Mar 1-May 4. Inclusive of TLTRO funds, extended total financing of Rs. 1.08 lakhcrore, ensuring business stability & continuity going forward. @FinMinIndia @DFS_India @PIB_India.”
The Finance Minister, who is also leading the task force for the economic response to the pandemic said that PSBs have complemented to the Reserve Bank of India’s (RBI) moratorium on loan repayment.
Over 3.2 crore accounts have availed the three-month loan moratorium, said another tweet.
“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 @FinMinIndia @DFS_India.”
(IANS)