The boost in the distribution of loans came on the directive of Finance Minister Nirmala Sitharaman who had announced the initiative in September.
Public Sector Banks (PSBs) distributed a record Rs 2.53 lakh crore of loans during the month of October as part of the customer outreach initiative, the Finance Ministry said on Thursday.
The boost in the distribution of loans came on the directive of Finance Minister Nirmala Sitharaman who had announced the initiative in September. She had asked the banks to reach out to customers and signal their willingness to lend following all prudential norms.
"As per the Union Finance Minister’s directive to PSBs in September, customer outreach programmes were conducted by PSBs in participation with other banks and NBFCs in 226 districts (from October 1 to October 9) in Phase – I and 148 districts (from October 21 to October 25) in Phase – II," the government said in a statement.
"PSBs actively reached out to their customers in these camps and made concerted efforts towards activities such as sanctioning of loans as per prudential norms, the opening of accounts along with Aadhaar and mobile seeding of accounts, and popularizing BHIM app. The drive also simultaneously galvanised similar outreach efforts in individual branches of PSBs i.e. outside the camps," it added.
Total disbursements during October was Rs 2,52,589 crore including camps and all branches. Out of this amount, Rs 1,05,599 crore was disbursed towards new term loan and Rs 46,800 crore was disbursed towards new working capital loans. With a total of 1,52,399 crore, 60% of total disbursement was towards these two.
Credit to NBFCs in the period was Rs 19,627.26 crore.
PSBs Disbursement Data in Customer Outreach Initiative – Product-wise
The ministry did not give data from each bank.
"This is a turnaround story. Banks are fully capitalised and in a position to meet any kind of credit requirement," Finance Secretary Rajiv Kumar was quoted as saying by PTI.
Two years of sustained efforts by the government have turned around the public sector banks, he added.
As per the data released by the ministry, lion's share of Rs 1,22,785 was disbursed to corporates, followed by agri loans (Rs 40,504 crore) and MSMEs (Rs 37,210 crore).
Rs 12,166 was disbursed as home loans while vehicle loans stood at Rs 7,058 crore.
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