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Private banks are fast catching up with the public sector banks (PSBs) as regards their performance under the much talked about ₹3-lakh crore 100 per cent Emergency Credit Line Guarantee Scheme (ECLGS) to support MSMEs in these trying Covid-19 times.
As of July 4, the overall loans sanctioned — both PSBs and private banks — touched ₹1,14,502.58 crore, of which ₹56,091.18 crore has already been disbursed, the Finance Minister’s Office tweeted on Tuesday.
Compared to July 1, there is an increase of ₹4,158.51 crore in the cumulative amount of loans sanctioned and an increase of ₹3,835.65 crore in the cumulative amount of loans disbursed by both PSBs and private sector banks as on July 4, the tweet added.
While public sector banks (PSBs) have sanctioned ₹65,863.63 crore, private sector banks, although started later, had as of July 4 done loan sanctions of ₹48,638.96 crore. As regards disbursements, the public sector banks have disbursed ₹35,575.48 crore and private sector banks have disbursed ₹20,515.70 crore.
The ECLGS was announced as part of the Aatmanirbhar package to provide additional credit to MSMEs and small businesses. Such enterprises were to be eligible to receive up to 20 per cent of their existing borrowing as additional loans at interest rates which were capped.
Maharashtra continued to top the chart of States in terms of loans sanctioned, while Tamil Nadu saw the highest disbursements as of July 4.
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