Lok Sabha Question No. 2861 (UNSTARRED), answered on 2018-12-28
Subject: 59-minutes loan to MSMEs
Ministry: FINANCE
Asked by: BHARATENDRA SINGH

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UN-STARRED QUESTION NO. 2861 TO BE ANSWERED ON DECEMBER, 2018 / PAUSA 7, 1940 (SAKA) 28th

## '59-minutes loan to MSMEs'

2861

Shri Kunwar Bharatendra :

Will the Minister of FINANCE be pleased to state

- (b) whether any other initiatives have been taken to ensure effective credit to MSME; and
- (a) the number of applications received, accepted and loans given under the new 59minutes Micro, Small and Medium Enterprise (MSME) loan scheme, bank-wise;
- (c) if the details thereof and the steps taken thereon ? SO,

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI SHIV PRATAP SHUKLA)

- Out of 1,31,028 completed applications received, 1,12,043 applications for loans on the psbloansinsgminutes.com portal have been accorded in principle approval since the launch of the portal: Sanctions have been made in respect of 40,669 cases\_ Bank wise details of loans accorded in principle approval and sanctioned by th Public Sector Banks (PSBs) since launch of the portal as on 25' December; 2018 is given in the Annexure.
- (b) and (c) Government and Reserve Bank of India (RBI) have taken several steps to ensure access of credit to MSMEs These inter-alia , include, advice to all Scheduled Commercial Banks (SCBs) to achieve a 20% year-on-year growth in credit to Micro and Small Enterprises (MSEs) , allocation of 60% of the MSEs advances to the micro enterprise accounts, a 10% annual growth in number of micro enterprise accounts, additional working capital limit to meet the requirements arising due to unforeseenlseasonal increase in demand, adoption of one cluster, operationalising at least one specialised MSME Branch in every  district,  simplified  computation working  capital of MSE units to make it minimum 20% of the projected annual turnover of the unit for borrowal limits upto Rs.5 crore setting up of Trade Receivables Discounting System (TReDS) to solve the problem of delayed payment of MSMEs, etc.

| S No.   | Bank Name                  | In-principle approval   | In-principle approval   | Sanctions      | Sanctions            |
|---------|----------------------------|-------------------------|-------------------------|----------------|----------------------|
| S No.   | Bank Name                  | Number of alcs          | Amount (Rs. in crore    | Number of alcs | Amount (Rs. in crore |
|         | Allahabad Bank             | 4153                    | 823.00                  | 929            | 202.22               |
| 2       | Andhra Bank                | 1647                    | 677.76                  | 935            | 348.93               |
| 3       | Bank of Maharashtra        | 1428                    | 507.28                  | 506            | 159.20               |
| 4       | Bank of Baroda             | 11608                   | 3579.27                 | 8995           | 3774.76              |
| 5       | Bank of India              | 9182                    | 2104.54                 | 4364           | 1006.62              |
| 6       | Canara Bank                | 7320                    | 2170.81                 | 1474           | 466.54               |
| 7       | Central Bank               | 5392                    | 1856.80                 | 3741           | 1352.17              |
| 8       | Corporation Bank           | 1603                    | 627.65                  | 1218           | 479.91               |
| 9       | IDBI                       | 1585                    | 1014.49                 | 506            | 241.18               |
| 10      | Indian Bank                | 2909                    | 1196.18                 | 1467           | 511.52               |
| 11      | Indian Overseas Bank       | 1689                    | 444.32                  | 740            | 204.02               |
| 12      | Oriental Bank of Commerce_ | 4349                    | 868.89                  | 2691           | 453.94               |
| 13      | Punjab National Bank       | 10299                   | 3641.56                 | 892            | 306.97               |
| 14      | Punjab & Sind Bank         | 2488                    | 526.6                   | 1942           | 385.96               |
| 15      |                            | 33009                   | 11470.41                | 4416           | 1582.19              |
| 16      | SIDBI                      | 259                     | 111.66                  | 42             | 15.45                |
| 17      | Syndicate bank             | 785                     | 186.59                  | 266            | 32.92                |
| 18      | UCO Bank                   | 1552                    | 368.37                  | 233            | 36.77                |
| 19      | Union Bank of India        | 8406                    | 4497.82                 | 4640           | 2338.67              |
| 20      | United Bank of India       | 251                     | 63.67                   | 139            | 38.42                |
| 21      | Bank Vijaya                | 2129                    | 674.38                  | 533            | 149.96               |
|         | Total                      | 112043                  | 37412.05                | 40669          | 14088.32             |

Source

Online PSB Loans Ltd,