While, as many as 8.5 lakh accounts of individual borrowers of over Rs 60,000 crore have also been restructured

New Delhi:
Public sector banks (PSBs) effected restructuring of 9.8 lakh accounts of micro, small and medium enterprises, due to the impact of Covid-19 pandemic, amounting to Rs 58,524 crore as of November 26, the government said in Parliament on Monday.

While, as many as 8.5 lakh accounts of individual borrowers of over Rs 60,000 crore have also been restructured.

”As per inputs received from public sector banks (PSBs), as on November 26, 2021, resolution plan/restructuring has been implemented by them in 9.8 lakh MSME accounts amounting to Rs 58,524 crore, and in 8.5 lakh accounts of individual borrowers amounting to Rs 60,662 crore, as on November 15, 2021,” the Finance Ministry said in a written reply in the Lok Sabha.

The government and the Reserve Bank took a number of measures to support the retail and micro, small and medium enterprises (MSME) borrowers in the wake of the pandemic, including a Covid-19 regulatory package granting moratorium of six months on payments of all instalments of term loans and deferment of recovery of interest on working capital from March 1, 2020 to August 31, 2020.

Under Emergency Credit Line Guarantee Scheme (ECLGS) which was backed by 100 per cent guarantee of the central government, banks and non-banking financial companies (NBFCs) have sanctioned loans amounting to Rs 2.97 lakh crore as on 26 November 2021, as per the reply.

Also, the launch of PM Street Vendor’s AtmaNirbharNidhi (PM SVANidhi), to help the poor street vendors impacted by the pandemic to resume their livelihood activities enabled 30.23 lakh vendors to access credit amounting to Rs 3,054 crore till November 30, 2021.

”PSBs sanctioned Rs 1,84,046 crore to 1.1 crore existing loan accounts under Covid-19 emergency relief schemes for their existing borrowers, including MSME borrowers and Self Help Groups, by providing additional loan facility without additional margin/security/ or processing charge.

”Further, government has launched nationwide Credit Outreach Programme on 16 October 2021, under which banks have been holding special camps across the country to make loans available to eligible borrowers,” the ministry said.

As reported by banks, an aggregate loan amount of Rs 94,063 crore has been sanctioned up to 26 November 2021 under this, it added.

Replying to a question in Lok Sabha on Monday,Bharat K Krad, minister of state for Finance,said, as per the Financial Stability Report (FSR) released by Reserve Bank of India (RBI) in July 2021, macro-stress tests indicate that the gross non-performing asset (GNPA) ratio of Scheduled Commercial Banks (SCBs), under the baseline scenario, may increase from 7.48 per cent in March 2021 to 9.80 per cent by March 2022.

“As per RBI inputs, the said GNPA ratio has been arrived at without factoring in the impact of the policy actions under way. Therefore, the actual movement of GNPAs of SCBs will depend on the extent to which the benefit of such policy interventions from the Central Government and RBI is availed of by the eligible borrowers which, in turn, facilitates revival of accounts under stress,” he said.

In pursuance of announcement in Budget Speech for financial year 2021-22, the proposal for setting up a special purpose vehicle for monetisation of non-core assets (surplus land and property) is under consideration of the government, Karad said in another reply.