Banks in Telangana sanction over Rs 2,500 crore to MSMEs

HYDERABAD: As part of the ‘Atmanirbhar Bharat Abhiyan’, that also provides credit support for MSMEs, banks in Telangana have sanctioned Rs 2,513 crore and disbursed Rs 1,688 crore to MSME beneficiaries under the guaranteed emergency credit line of 20% as on June 30, 2020, the State Level Bankers’ Committee (SLBC) was informed on Monday.
Hit by Covid-19, MSMEs sought support from the government following which the Centre, as part of the Atmanirbhar Bharat Abhiyan, had announced Rs 3 lakh crore collateral free automatic loans for businesses including MSMEs, Rs 20,000 crore subordinate debt for MSMEs and Rs 50,000 crore equity infusion through MSME Fund of Funds, among others.
Apart from credit support to MSMEs in the state, the SLBC said Rs 231 crore has been disbursed to farmers as 10% emergency credit line to help them battle Covid-19 woes. The banks in the state have also launched PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi, a microfinance scheme for street vendors) on July 1.
Meanwhile, launching the annual credit plan for 2020-21, SLBC informed that the current financial year’s annual credit plan outlay is pegged at Rs 1.61 lakh crore as against Rs 1.46 lakh crore in 2019-20 (an increase of 10.52%). Of the total credit plan, priority sector share stands at Rs 1.22 lakh crore in FY21 (Rs 1.11 lakh crore in FY20).
The disbursals under agricultural sector are projected at Rs 75,142 crore (Rs 68,597 crore projections for FY20) and MSME disbursals are projected at Rs 35,197 crore (Rs 31,355.25 crore projected for FY20) for 2020-21.
Highlighting the performance of banks in the state in 2019-20, SLBC president, Om Prakash Mishra said total deposits grew by Rs 30,168 crore during the year to Rs 4.84 lakh crore as on March 31, 2020. The total advances of banks grew by Rs 36,544 crore during the year to Rs 5.70 lakh crore as on March 31, 2020. On the financial inclusion front, banks have covered all the 255 unbanked rural centers with population above 5,000 with banking outlets. “All the villages within 5 km radius have been covered with banking infrastructure … except nine villages…due to connectivity problems,” a release said.