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Minister’s in-depth review of banks
Public Sector Banks (PSBs) are well equipped to support credit needs of their customers following the recent Rs.55,000 crore recapitalization.
The PSBs have continued to support the NBFC/HFC sector, noted the Finance Ministry on 14 Oct 2019, after Minister Nirmala Sitharaman reviewed the banks’ performance.
Since the IL&FS default in September 2018 till 10 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.
Disbursement by PSBs to NBFCs has been Rs.39,068 crore since the last review on 19 September 2019 till 10 October 2019.
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 the Ministry.
The Minister also carried out in-depth review of credit and implementation of measures
In the review, it was noted that during the first phase of the Customer Outreach Initiative, from 1st to 9 October 2019, PSBs disbursed Rs.81,781 crore, including new term loans of Rs.34,342 crore.
Banks’s CEOs shared their plans for the second phase of the Customer Outreach Initiative, with camps in about 150 districts between 21 to 25 October 2019, building on the momentum already built.
Details of specific dues outstanding of the companies, including MSME, with the corporates and aggregating 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.
In addition, home loans, vehicle loans, agriculture loans, education loans, and other MSME and personal loans would be focused upon. It was reiterated that the outreach would be without any dilution in diligence or underwriting standards. fiinews.com
