New Delhi (NVI): Finance Minister Nirmala Sitharaman on October 14 said during the first phase of the Customer Outreach Initiative, Public Sector Banks (PSBs) disbursed Rs 81,781 crore from October 1 to 9, including new term loans of worth Rs 34,342 crore.
In meeting with bank chief executives, Sitharaman reviewed the performance of Public Sector Banks (PSBs) and announced credit and implementation of measures to support economic growth were reviewed in-depth.
The second phase of the customer outreach Initiative is likely to be held between October 21-25 in about 150 districts.
“Approximately Rs 40,000 crores will be shared by the Ministry of Corporate Affairs with banks for reaching out to MSMEs during the customer outreach initiative for bill discounting and enabling MSMEs to access working capital,” said in a statement.
“In addition, home loans, vehicle loans, agriculture loans, education loans, and other MSME and personal loans would be focused upon. It was noted that the PSBs are well equipped to support credit needs with the recent recapitalisation of over Rs 55,000 crore,” the statement added.
In the review meeting, it was noted that PSBs have continued to support the NBFC/HFC sector. Since the IL&FS default in September 2018 till 10th October 2019, PSBs have sanctioned total support of Rs 3,97,557 crore in the form of credit as well as pool-buyouts of Rs 1,07,792 crore, including Rs 15,455 crore under the newly launched Partial Credit Guarantee Scheme.
Since the last review on September 19 2019 till 10th October 2019, disbursement by PSBs to NBFCs was Rs 39,068 crore.
The PSB’s chief executives informed that they will continue expeditious disbursement of pool buy-outs including those sanctioned under the Partial Credit Guarantee Scheme.
“The government would also issue suitable clarifications to banks with a view to expedite processing of proposals under the scheme,” said in a statement.