Second wave of Covid-19 arrives in PSB collection in May: Indian Bank Association
Association of Indian Banks (IBA) President Rajkiran Rai said on Sunday that the second wave of COVID-19 impacted the collections of public sector banks (PSBs) in May.
“It is difficult to give figures, but I can say that we encountered difficulties in the collections in May,” Rai said during a press briefing.
Responding to a question about the impact of Wave 2 on Equal Monthly Payment (EMI) Home Loan, Personal Loan, and Credit Card Bill Payments compared to Wave 1, R Rai said, “ We saw a substantial improvement in April 21 versus April 2020, but we are seeing the impact on bank collections in the current May. “
“It is difficult to give figures because there is still time for the end of the month, but I can say that we are facing collection difficulties in May and we are offering customers the reconstruction program available”, he said. -he declares.
He said the government announced the Rs 3 lakh crore Emergency Line of Credit Guarantee Scheme (ECLGS) for MSMEs last year.
“Out of Rs lakh 3 crore of ECLGS for MSMEs Rs lakh crore 2.54 is disbursed to date. Yet there is a window available for around, Rs lakh 45,000 crore,” he added.
Dinesh Khara, chairman of the State Bank of India, said that in April 2020, the banks’ activities had been completely destroyed. “Compared to last year, this time the situation is better. It is too early to assess the impact of COVID19 on businesses as a whole for the coming year,” he said.
The IBA also partnered with SBI to announce three products that were designed to provide new loan support to fight the pandemic.
Dinesh Khara, Chairman, SBI, Rajkiran Rai, Chairman, IBA, and Sunil Mehta, Managing Director, IBA spoke at a joint press conference to announce the various support measures and the launch of new loan products by all public sector banks to mitigate the impact due to the resurgence of the Covid pandemic.
A joint SBI and IBA statement said that while the economy had rebounded well since the start of the 4th quarter of FY21, its resurgence since April 2021 has had an impact on the lives of individuals and on businesses. business and MSME cash flow.
The IBA and SBI jointly announced three products that were designed to provide new loan support to vaccine manufacturers, hospitals or clinics, pathology laboratories, oxygen manufacturers and suppliers, ventilators, importers of vaccines and logistics companies of drugs related to Covid and patients for treatment.
First on the list is loans to healthcare companies for setting up oxygen plants under ECGLS. Loan up to Rs 2 Crores capped at 7.5% for hospitals, nursing homes for setting up oxygen plant, backed by 100% NCGTC warranty coverage under ECLGS 4.0.
The second product is business loans for health facilities up to Rs 100 Crores to set up or expand the health care infrastructure and to manufacturers of health products and the third product is unsecured personal loans to individuals from Rs 25,000 to Rs 5 lakhs for employees, non-employees and retirees for having followed the Covid treatment.
In announcing these products, Khara said the PSBs have formulated a standard approach for loan restructuring with categories up to Rs 10 lakhs, above Rs 10 lakhs and up to Rs 10 crores and above. of Rs 10 crores.
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