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Banks sanction Rs 1.36 lakh crore to MSMEs under ECLGS: CARE Ratings
Aug-04-2020

CARE Ratings in its latest report has said that banks, both public sector banks (PSBs) and private sector banks (PVBs) have sanctioned Rs 1,36,155 crore in about 40 lakh accounts and disbursed Rs 87,227 crore to MSMEs under the Emergency Credit Line Guarantee Scheme (ECLGS) till July 29, 2020. It said the total sanctioned amount works out to be 46 percent of the target of Rs 3 lakh crore set up by the government while announcing the relief package for industry, especially the MSME sector, which was hit hard by the coronavirus pandemic. The emergency credit scheme primarily aims at providing liquidity support to MSMEs under 'Aatmanirbhar Bharat Abhiyan' programme announced by Finance Minister Nirmala Sitharaman.

According to the report, as on July 23, 2020, PSBs and PVBs sanctioned Rs 1,30,492 crore (in 38.19 lakh accounts) and disbursed Rs 82,065 crore (in 20.16 lakh accounts) to MSMEs under the ECLGS scheme. It said the cumulative sanctions is around 44 percent of the total target of Rs 3,00,000 crore. The average sanction and average disbursement per account is Rs 3.42 lakh and Rs 4.07 lakh respectively. The share of PSBs' sanctions and disbursements in total sanctions and disbursements as on July 23, 2020 stood at 55 per cent and 58 per cent, respectively, while PVBs' share stood at 45 per cent and 42 per cent, respectively. It further said PVBs sanctioned Rs 58,674 crore (in 4.86 lakh accounts) and disbursed Rs 34,434 crore (in 2.30 lakh accounts) to MSMEs under the ECLGS scheme.

The report further said the cumulative sanctions by PVBs is around 20 per cent of the total target of Rs 3,00,000 crore. The average sanction and average disbursement per account is Rs 12.05 lakh and Rs 14.95 lakh, respectively. PSBs sanctioned Rs 71,818 crore (in 33.33 lakh accounts) and disbursed Rs 47,631 crore (in 17.86 lakh accounts) under the scheme.

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