SME Times News Bureau | 10 Oct, 2019
With Overall financial flows to the commercial sector
declining sharply by 88 per cent during the first six months of the current
financial year amid the slowdown in the economy, Finance Minister Nirmala
Sitharaman has called for a meeting with CEOs of public sector banks (PSBs)
next week to consult on ways to boost credit offtake, officials said on
According to the latest RBI data, the flow of funds from banks and non-banks to
the commercial sector has been Rs 90,995 crore in 2019-20 so far (April to
mid-September) as against Rs 7,36,087 crore in the same period last year. The
commercial sector does not include farming, manufacturing and transportation.
With the financial sector going through a turbulent phase, there was a reverse
flow of Rs 1,25,600 crore from the commercial sector to non-deposit-taking
NBFCs and deposit-taking NBFCs as against a flow of Rs 41,200 crore in the same
period last year.
The meeting, scheduled to be held on October 14, will review fund flow to s
tressed NBFC and MSME (micro, small and medium enterprises) sectors.
Banks are expected to present report card on partial credit guarantee scheme,
their number of tie-ups and and fund raising from market to enhance their
The Centre in August issued guidelines on operationalising Rs 1 lakh crore
partial guarantee scheme under which PSBs can purchase high-rated pooled assets
of financially sound non-banking finance companies (NBFCs).
The meeting will also review first phase of outreach programme held across 250
districts across the country. This will be the second meeting of Sitharaman
with CEOs of PSU banks in less than a month.
The first phase of 'Loan Mela' for providing credit to agriculture, vehicle,
home, MSMEs, education and personal categories ended on October 7. The second
phase will be held in 150 districts between October 21 and October 25, just