India Markets closed

PSU banks come to rescue before govt’s economic package; SBI, Indian Bank, others offer quick credit

FE Online
emergency credit line, bank of india, union bank of india, sbi, state bank of india, coronavirus, covid 19

Even as Finance Minister Nirmala Sitharaman has announced to roll out an economic relief package amid the Covid-19 scare, the PSU banks have come to rescue the businesses affected by the countrywide lockdown. The businesses suffering from a slump in demand and zero footfall in the market can now look up to many PSU banks to get emergency credit to carry on their endeavors. State Bank of India, Indian Bank, Uco Bank, Bank of India (BOI), and Union Bank of India (UBI), have announced emergency credit lines for quick loans. While Bank of Baroda has offered quick loans to its existing MSME and corporate borrowers, the Indian Bank has offered companies, small businesses, retail customers and pensioners, to avail this facility. 

SBI was the first one to announce such emergency credit line and it said in a circular that the additional liquidity facility Covid-19 Emergency Credit Line (CECL), will provide funds up to Rs 200 crore and will be available till June-end. The State Bank of India has offered loans at an interest rate of 7.25 percent, for a tenure of 12 months. Many other PSU banks are also expected to follow the suit.

Also Read | Gross non-performing assets of banks may rise up to 9.6-9.9%: CARE

Meanwhile, to reduce the burden on the companies, FM Sitharaman recently eased the burden of regulatory compliance by announcing a slew of measures, which included an extension of the deadline to file GST and Income Tax returns, an extension of the deadline for Sabka Vishwas Scheme, and raising the threshold limit of initiation of IBC proceedings from Rs 1 lakh to Rs 1 crore. The Finance Ministry is likely to soon announce an overall economic relief package in the wake of coronavirus lockdown.