The government's emergency credit line guarantee scheme (ECLGS) 5.0 has gained good traction, with public sector banks (PSBs) — especially State Bank of India (SBI) — extending most amount of loans under the scheme.
On Friday, SBI Chairman CS Setty said the bank has sanctioned Rs 32,750 crore under the scheme, of which Rs 25,440 crore of loans have already been disbursed. HDFC Bank MD and CEO Sashidhar Jagdishan said ECLGS scheme is helping bank gain market share in mid-corporate segment, without disclosing the amount sanctioned under the scheme.
Following are the details of banks' exposure towards ECLGS 5.0 scheme:
- Punjab National Bank sanctioned Rs 15,856 crore, disbursed Rs 12,000 crore
- Union Bank of India sanctioned Rs 12,000 crore, disbursed Rs 10,000 crore
- Canara Bank sanctioned Rs 11,000 crore
- Bank of Baroda disbursed Rs 11,000 crore
- Indian Overseas Bank sanctioned and disbursed Rs 2, 600 crore, targets Rs 4,500 crore total exposure
- Kotak Mahindra Bank disbursed Rs 3,000 crore
- RBL Bank disbursed Rs 200 crore
- Federal Bank sanctioned and disbursed Rs 1,800-Rs 2,000 crore
About ECLGS 5.0
The ECLGS scheme is a government initiative providing 100% (for MSMEs) and 90% (for non-MSMEs/airlines) collateral-free guaranteed credit through member lending institutions. The current version, ECLGS 5.0, helps businesses manage short-term liquidity mismatches with loans up to Rs 100 crore for general sectors and Rs 1,500 crore for airlines.
In July, the government said ECLGS 5.0 scheme had over 4.1 lakh guarantees, and over Rs 1.55 lakh crore loan guarantees have been issued. 98% of the guarantees benefit MSMEs.
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