Money & Banking

ECLGS: Banks’ cumulative sanctions touch 54% of 3-lakh crore target, says report

PTI Mumbai | Updated on September 10, 2020

Banks have cumulatively disbursed close to ₹1.15 lakh crore to 24.70 lakh MSME accounts under the ₹3-lakh crore targeted emergency credit line guarantee (ECLGS) scheme announced by the government in June to help small businesses survive the pandemic shocks, according to a CARE Ratings report.

The cumulative sanctions touched 54 per cent or ₹1.61 lakh crore of the target of ₹3 lakh crore as of September 3, as per data collated by the agency.

“As of September 3, banks have together sanctioned ₹1,61,018 crore to 41.94 lakh accounts and disbursed ₹1,13,713 crore to 24.70 lakh accounts under the scheme. The cumulative sanction is 54 per cent of the total target of ₹3 lakh crore,” the report said.

The average sanction and average disbursement per account is ₹3.84 lakh and ₹4.60 lakh, respectively.

The share of state-run banks sanctions and disbursements in total sanctions and disbursements stood at 48 per cent and 55 per cent, while private banks share stood at 52 per cent and 45 per cent, respectively as of September, it said.

While state-owned banks sanctioned ₹78,067 crore and disbursed ₹62,026 crore, private ones sanctioned ₹82,950 crore and disbursed ₹51,687 crore.

State-run banks sanctioned ₹78,067 crore to 33.68 lakh accounts and disbursed ₹62,026 crore to 21.28 lakh accounts, with an average sanction and average disbursement of ₹2.32 lakh and ₹2.91 lakh, respectively, the report said.

Private ones sanctioned ₹82,950 crore to 8.25 lakh accounts and disbursed ₹51,687 crore to 3.42 lakh accounts with the average sanction and average disbursement at ₹10.05 lakh and ₹15.10 lakh, respectively, it said.

State Bank of India leads with sanctions and disbursements of ₹24,389 crore and ₹18,972 crore, respectively.

Maharashtra and Tamil Nadu continue to get the maximum sanctions at ₹8,064 crore and ₹7,817 crore, respectively, and disbursements at ₹6,708 crore and ₹6,150 crore respectively, it said.

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Published on September 10, 2020
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