PROVIDING EFFECTIVE RELIEF MEASURES TO MSMEs
Vibrant and dynamic in nature, Micro, Small & Medium Enterprises (MSME) and Small & Medium Enterprises (SME) play a crucial role in India's economy.
SBI's SME portfolio is about Rs 2 lakh plus crore with 1.4 million customers, and MSMEs constitute a significant portion of the portfolio. When the Covid pandemic left its impact on various sectors, State Bank of India came to the rescue of the MSMEs immediately. MSMEs formed a crucial part of the announcements made under the ‘Atmanirbhar Bharat Abhiyan’ by GOI.
Apart from extending deferral of interest dues and moratorium on Term loan repayments, SBI has been at the forefront in providing relief measures to SME borrowers affected by the lockdown, by extending 10% of fund based working capital limits as CCECL (Common COVID 19 Emergency Credit Line) and easing of working capital finance.
During the lockdown, to empower the MSMEs, SBI carried out several initiatives –
SBI organized more than 1000 E-Town Hall Meetings from May to date.
Bank reached out to all the MSME customers to explain various relief and financial support measures extended by SBI Conducted 119 webinars for employees to educate them on the products for support to MSMEs.
50 State Bank Institute of Learning & Development & 2 Apex Training Institutes at Gurugram and Hyderabad conducted 841 webinars during May 2020
SUPPORTING MSMES AND BUSINESS ENTERPRISES
Responding quickly after issue of ECLGS guidelines by NCGTC, SBI rolled out the Guaranteed Emergency Credit Line Loan Product to support business enterprises. The pre-approved product is made available within 5 days on sending notification to customer and acceptance. Under Guaranteed Emergency Credit Line (GECL), the bank has so far sanctioned GECL aggregating Rs 19000 crores to 4 lakh MSME customers and disbursed loans worth Rs 13000 crores.
Revamp of SME structure: SBI has created a new position of AGM SME across 80 Administrative offices to improve the connect with SME customers and function as a single point of contact.
COVID-19 INITIATIVES & ENABLERS FOR MSMES
The Bank provided immediate support to MSMEs by extending moratorium for Term Loans. Other enablers include - deferment of Interest on Working Capital, sanction of pre-approved CCECL (for WC limits upto Rs 5.00 crore in Sole Banking), smooth roll out of GECL. SMS was sent to all eligible customers immediately advising availability of the product. About 4 lakh GECL loans have been sanctioned and Rs 13000 Crores have been disbursed so far. COVID Emergency Credit Line (CECL): Till now 1,35,992 loans have been sanctioned aggregating Rs 8975 Crores. Further, 21,345 loans disbursed aggregating Rs 3218 Crores. The purpose of the CECL is to meet the temporary liquidity mismatch confronting the SMEs arising out of Covid-19. Restructuring of MSME accounts: SBI has been proactively restructuring of stressed loans under the RBIs Scheme for restructuring MSME accounts.
Shri Arijit Basu, Managing Director Commercial Clients Group & IT, SBI
SBI has always been at the forefront of assisting the MSME sector since 1956. We understand that the MSME sector is the key to revival of Indian economy and the bulwark of Atmanirbhar Bharat. We are closely working with all MSME units in our fold and beyond to offer them all the required support and are creating a simplified digital solution in on-boarding and service. Our resolve and commitment is to support this vital sector that provides large employment and is a major pillar of our supply chain.