Banks sanction loans of Rs 1,55,995 crore under ECLGS for MSME sector

As per the Finance Ministry data, banks have sanctioned loans worth Rs 1,55,995 crore under Rs 3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the micro, small & medium enterprises (MSME) sector spinning under the slowdown led by the Coronavirus pandemic.

However, disbursements against this stood at Rs 1,05,926 lakh crore till August 24. The latest numbers on ECLGS, as released by the finance ministry, comprise disbursements by all 12 public sector banks (PSBs), 24 private sector banks, and 31 non-banking financial companies (NBFCs).

Market leader State Bank of India (SBI) has sanctioned Rs 23,864 crore of loans and disbursed Rs 17,599 crore. It is followed by Punjab National Bank, which has sanctioned Rs 10,348 crore. However, its disbursements stood at Rs 7,621 crore as of August 24. In May 2020, the Cabinet approved additional funding of up to Rs 3 lakh crore at a concessional rate of 9.25 per cent through ECLGS for the MSME sector.

As of August 24, 2020, the total amount sanctioned under the 100 per cent ECLGS by PSBs and private banks stood at Rs 1,55,995.62 crore, of which, Rs 1,05,926.99 crore has already been disbursed.

The loan amounts sanctioned by public sector banks (PSBs) increased to Rs 76,765 crore, of which, Rs 58,230 crore has been disbursed as of August 24. At the same time, private sector banks have sanctioned Rs 79,230 crore of loans and disbursed Rs 47,696 crore. Compared to August 18, 2020, there is an increase of Rs 5,236.17 crore in the cumulative amount of loans sanctioned and an increase of Rs 3,681.22 crore in the cumulative amount of loans disbursed by both PSBs and private sector banks combined as on August 24, 2020.