HYDERABAD: Public sector banks have sanctioned about Rs 50,000 crore in the past one week to various sectors including Micro, Small and Medium Enterprises (MSME), agriculture and retail, according to Union Finance Minister Nirmala Sitharaman.

In all, between March 1 and May 15, banks lent Rs 6.45 lakh crore worth of loans to businesses notwithstanding the ongoing lockdown to fight the Covid-19 pandemic. A week before, or as on May 8, banks sanctioned a total Rs 5.95 lakh crore to borrowers.

“Loans worth over Rs 6.45 lakh crore were sanctioned by PSBs during March 1 to May 15 for 54.96 lakh accounts from MSME, Retail, Agriculture & Corporate sectors; A notable increase compared to the Rs 5.95 lakh crore sanctioned as of May 8,” she tweeted on Tuesday.

According to Sitharaman, PSBs sanctioned over Rs 1.03 lakh crore as emergency credit lines and working capital enhancements between March 20 and May 15, which she said was a substantial increase over the Rs 65,879 crore that had been sanctioned up to May 8.

In late March, soon after the lockdown announcement, State-run banks launched an emergency credit line to existing MSME and corporate borrowers to provide an additional line of credit of 10 per cent of the existing fund based on working capital limits, subject to a maximum of Rs 200 crore.

Besides, banks have offered a three-month moratorium on loan repayments till May 31 as per the RBI guidelines, which experts believe may be extended for another three months.

Fast-tracking loan sanctions Rs 6.45 lakh crore worth loans were extended to businesses by public sector banks between March 1 and May 15

Rs 5.95 lakh crore worth loans were sanctioned to borrowers by PSBs till May 8