As a part of the Massive outreach program by the government, the Public Sector Banks (PSBs) have disbursed over 2.53 lakh crore loans in October during the festive season. Finance Minister Nirmala Sitharaman nudged them to fan out and increase lending across the country in the festive season to boost consumption and revive the economy. Under her direction, outreach camps or loan Melas were conducted across 374 districts across the country during October 2019.
“They disbursed a record Rs. 2,52,589 crore of loans during the month. As much as Rs. 1,05,599 crore was given towards new term loans while Rs. 46,800 crore was disbursed as new working capital loans. So fresh lending, including new term loans, was 60 percent of the total disbursement,” said the Department of Financial Services.
“This is a turnaround story. Banks are fully capitalized and in a position to meet any kind of credit requirement. Two years of sustained efforts by the government have turned around the public sector banks,” said Finance Secretary Rajiv Kumar.
“Credit to NBFCs during the month of October 2019 was Rs. 19,627.26 crore. As per the finance minister’s directive, outreach programs were conducted by banks in participation with private banks and NBFCs in 226 districts from October 1-9 in Phase-I and 148 districts from October 21-25 in Phase-II,” the statement said.
“Public sector banks actively reached out to their customers in these camps and made concerted efforts towards activities such as sanctioning of loans as per prudential norms, the opening of accounts along with Aadhaar, mobile seeding of accounts and popularising the BHIM app,” it added.
“The drive also simultaneously galvanized similar outreach efforts in individual branches of banks,” it further said.
As per the data released by the Department of Financial Services, Corporates availed a maximum of Rs. 1.22 lakh crore during the month, followed by Agri loans (Rs. 40,504 crores) and MSMEs (Rs. 37,210 crores).
Home loans to the tune of Rs. 12,166 crore were given by banks while vehicle loans stood at Rs. 7,058 crores.
Out of total credit, Rs. 19,627.26 crore was given to NBFCs, the co-origination alone was to the tune of Rs. 15,297.18 crore and pool buyout were Rs. 1,453.13 crore.