Loans worth Rs 6.5 lakh crore sanctioned between March 1 and May 15: the government
The finance ministry said on Tuesday that public sector banks (PSBs) had sanctioned loans worth Rs 6.45 lakh crore to 5.5 million borrowers belonging to micro, small and medium enterprises (MSME ), to the retail, agriculture and business sectors from March 1 to May 15.
Of that amount, 50,000 crore rupees were sanctioned during the week ending May 15, the ministry said.
On Tuesday, the Office of the Minister of Finance (FMO) tweeted: “Loans worth over Rs 6.45 lakh crore were sanctioned by the PSB from March 1 to May 15 for 54.96 lakh accounts from the sectors of the MSME, retail, agriculture and business; A notable increase compared to the crore of Rs 5.95 lakh sanctioned on May 8, ”tweeted Tuesday the office of the Minister of Finance.
Experts said the real measure of industrial recovery is actual loan disbursement. The finance ministry was unable to immediately disclose disbursement data. A spokesperson for the Ministry of Finance did not comment on this case.
“Industrial activity is directly proportional to the taking of credit. Companies will only withdraw money from the sanctioned limit if they are confident of their return on their investment. When they don’t draw from their sanctioned limits, that automatically indicates inadequate activity, ”said a small industries representative who declined to be named.
Easy credit and unsecured loans to agriculture sector and MSMEs are the key to Rs 20.97 lakh Atmanirbhar Bharat Abhiyan crore (Autonomous Indian Initiative) to jumpstart the coronavirus-hit economy.
“Public sector banks sanctioned over Rs 1.03 crore as emergency credit lines and working capital improvements during the period March 20 to May 15, which is a substantial increase from compared to Rs 65,879 crore which had been sanctioned until May 8, “said the Minister of Finance. office tweeted.
While announcing the first tranche of the five-part package, FM Nirmala Sitharaman unveiled an emergency working capital facility of Rs 3 lakh crore for businesses, Rs 20,000 crore of subordinated debt for struggling MSMEs and proposed to set up a “fund of funds” with a corpus of Rs 10,000 crore to provide financial support to MSMEs.
Earlier on May 7, the ministry said in a series of tweets that India’s economy was “on the verge of recovery” as state banks sanctioned loans worth 5.66 lakh crore over the past two months to around 4.2 million MSME-owned account holders. , retail, agriculture and business.
In this regard, Niranjan Hiranandani, President of the Associated Chambers of Commerce and Industry of India (Assocham), said: “Industry needs money, especially MSMEs. It’s good that the money has been sanctioned, now the disbursement should take place as soon as possible. “
Sanjay Aggarwal, senior vice president of the PHD Chamber of Commerce and Industry, said it was of the utmost importance that these sanctions be converted into disbursements as soon as possible.