Press Release basis today’s Press Conference by IBA and SBI

Shri. Dinesh Khara, Chairman, SBI, Shri. Rajkiran Rai, Chairman, IBA and Shri Sunil Mehta, Chief Executive, IBA addressed a joint press conference today to announce the various support measures and launch of new loan products by all Public Sector Banks to mitigate the impact due to resurgence of Covid pandemic.

While the economy had revived well from the beginning of 4th quarter of FY21, its resurgence since April 21 has impacted the lives of individuals, and cash flows of businesses and MSMEs.

To address the disruptions caused by the resurgence of Covid pandemic, 

Reserve Bank of India (RBI) in the statement dated 05.05.2021 has announced several measures such as 

Term Liquidity Facility of ₹50,000 crore to Ease Access to Emergency Health Services (Covid Loan Book), 

Resolution Framework 2.0 for COVID Related Stressed Assets of Individuals, Small Businesses and MSMEs. Re-assessment of Working Capital Limits etc.,

Further, Government of India with a view to providing support to MSMEs, safeguard livelihoods and to help in seamless resumption of business activity and also to give fillip to finance the critical healthcare facilities, has announced modifications to the very successful ECLGS Scheme. 

Government has enlarged the scope of ECLGS. DFS, GOI has announced today the contours of an expanded ECLGS 4.0 with 100% guarantee cover by NCGTC for loans up to Rs.2 Cr. to hospitals, nursing homes, clinics for setting up on site Oxygen Generation plants. 

Validity of ECLGS has been extended to 30.09.2021. Disbursement under the scheme is permitted up to 31.12.2021. 

Operating Guidelines will be issued by NCGTC.

In the backdrop of the above, Public Sector Banks have undertaken. 

To implement the expanded ECLGS measures  

To make the loan products available to business entities to improve the healthcare infrastructure and to individuals to meet the expenditure for covid treatment

 To put in place systems and processes for seamless implementation of RBI’s Resolution Framework 2.0

Banks are expected to create a Covid loan book under the RBI Guidelines. 

Accordingly, 3 undernoted products have been designed to provide fresh lending support to vaccine manufacturers, hospitals/dispensaries, pathology labs, manufacturers and suppliers of Oxygen, Ventilators, importers of vaccines & Covid related drugs logistics firms and patients for treatment