Loans worth ₹2.52 lakh crore disbursed in October: Centre

In PSBs’ outreach, corporates get almost half of the total; MSMEs get ₹37,210 cr.

November 21, 2019 10:24 pm | Updated 10:24 pm IST - NEW DELHI

Public sector banks (PSBs) and non-banking financial companies (NBFCs) disbursed a total of ₹2.52 lakh crore worth of loans in two tranches during their outreach programmes in October 2019, the Finance Ministry announced on Thursday.

Almost half of this amount (over ₹1.22 lakh crore) were loans to corporates. Home loans accounted for ₹12,166 crore, while vehicle loans stood at ₹7,085 crore. Agricultural loans accounted for ₹40,504.

Within the loan disbursals, loans given to micro, small and medium enterprises (MSMEs) accounted for ₹37,210 crore.

FM’s directive

“As per the Union Finance Minister’s directive to public sector banks (PSBs) in September 2019, customer outreach programmes were conducted by PSBs in participation with other banks and NBFCs in 226 districts (from October 1, 2019 to October 9, 2019) in Phase I and 148 districts (from October 21, 2019 to October 25, 2019) in Phase II,” the government said in a statement.

Apart from the sanctioning loans, the banks also made efforts towards the opening of accounts, Aadhaar and mobile seeding of accounts, and popularising the BHIM app.

According to the government, of the ₹2,52,589 crore worth of loans disbursed, ₹1,05,599 crore were disbursed towards new term loans and ₹46,800 crore were disbursed towards new working capital loans.

The new term loans and the new working capital loans accounted for 60% of the total disbursement.

Credit to NBFCs

The government further said that public sector banks gave credit worth ₹19,627.26 crore to NBFCs during October 2019.

The credit to the NBFCs includes ₹1,453.13 crore for the buyout of their pooled assets by the banks.

Finance Minister Nirmala Sitharaman had, in her Budget speech, announced a partial credit guarantee scheme for the banks to encourage them to purchase high-rated pooled assets of financially sound NBFCs.

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