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    Loan outreach: PSBs disburse Rs 2.5 lakh crore in October

    Synopsis

    Under an outreach programme, public sector banks disbursed as much as Rs 2.53 lakh crore in one month.

    New Delhi: Public sector banks disbursed a record Rs 2.53 lakh crore in loans in October as part of outreach programmes across 374 districts in the country, the government said on Thursday.

    Loans to corporates accounted for Rs 1.23 lakh crore or 48.6% of the total disbursements by PSBs during the month. Non-banking financial companies (NBFCs) received disbursements of Rs 19,627.3 crore, of which Rs 15,297.2 crore were used for on-lending and co-origination of further loans.

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    “PSBs 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 government said in a statement, adding that PSB branches not participating in the camps also increased efforts to reach customers during the month.

    PSBs provided Rs 1.06 lakh crore in new term loans and Rs 46,800 crore in new working capital loans during the month.

    Finance minister Nirmala Sitharaman had on September 19 announced that public sector banks would conduct loan outreach programmes to extend credit, particularly to farmers, MSMEs and customers looking for home and vehicle loans. The announcement was part of a series of announcements by the minister aimed at boosting flagging economic growth.

    Agriculture loans accounted for Rs 40,504 crore of the total loan disbursements by PSBs during the month, while loans to MSMEs accounted for Rs 37,210 crore.

    PSB’s provided Rs 12,166 crore of credit for home loans, Rs 7,085 crore for vehicle loans and Rs 15,250 crore for other personal loans during the month.

    Another key agenda of the loan outreach programmes was to push liquidity to NBFCs. Public sector banks purchased pooled assets of NBFCs worth Rs 1,453.16 crore during the month and also purchased NBFC assets worth Rs 2,876.95 crore under the government’s partial credit guarantee scheme.

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