SBI to pay out Rs 700 crore to MSMEs in four districts including Mumbai

In order to recover from the financial crisis brought upon by the necessary national lockdown, State Bank of India (SBI) has decided to pay out Rs 700 crore to MSMEs (Micro, Small and Medium Enterprises) in Mumbai. 

Due to a lack of business and trade, several small businesses require an urgent cash influx in order to keep them afloat. It is said that the funds will be disbursed in the regions by the end of June. SBI maintains a strong foothold in MSME lending and has a market share of 22 per cent among all Indian banks.

The Rs 700 crore MSME payments will be made in four districts including Mumbai, Thane, Palghar, and Raigad. The bank has also made arrangements to offer emergency loans to businesses suffering as a consequence of the coronavirus.

Read - SC Stays HC Order Allowing Shifting Of HDIL Promoters From Jail To Their Residence

Suresh Nair, Deputy General Manager for SMEs and financial inclusion at SBI said that the crisis will hopefully not lead to bad loans given that the Reserve Bank of India has placed a moratorium on all loan repayments. He said that it’s too soon to tell how NPAs or non-performing assets have been affected by the coronavirus, but expected to receive more clarity on this front by August this year.

It’s worth mentioning that SBI recently put out a sanction letter to offer additional loans to 67 per cent of eligible borrowers. However, Nair said that only 50 per cent of them have been able to get loans due to difficulties in officiating documents on such a large scale.

For all our coverage on Coronavirus, follow our live blog here