Among all banks, SBI
controls a market share of 22% in the MSME lending.
State
Bank of India (SBI), the country's largest lender, has set a target of
disbursing Rs 700 crore to MSMEs in the Mumbai circle by the end of June, to
help them tide over liquidity crisis due to the Covid-19 lockdown.
Among all banks, SBI controls a market share of 22 per cent in the MSME lending.
"SBI will boost flow
of credit to MSMEs (micro, small and medium enterprises) in this challenging
period by reassessing their working capital limit and also by extending
Covid-19 emergency loans.
"Overall, we expect to
lend Rs 700 crore to MSMEs
in four districts of Mumbai circle — Mumbai, Thane, Palghar and Raigad — by the
end of June," the World Trade Centre said in a statement quoting Suresh
Nair, deputy general manager (SMEs and financial inclusion) at SBI, as saying
after a webinar.
Nair expressed hope that
the pandemic will not lead to a sudden spurt in bad loans as the Reserve Bank
of India has provided moratorium on all loan repayments.
"The impact of the
crisis on NPAs (non-performing assets) will become clear after August depending
on the evolving situation," Nair said.
Though SBI has provided
sanction letter for additional loan facility to 67 per cent of all eligible
borrowers, only 50 per cent of them could avail of the facility due to
practical difficulties in executing documentation, he said.
