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Shares of state-owned behemoth Life Insurance Corporation (<keyword id="19903588" type="General" weightage="20" keywordseo="LIC" source="keywords">LIC</keyword>) have outperformed rivals like <keyword id="20079495" type="General" weightage="20" keywordseo="HDFC-Life" source="keywords" meta.keywordsubtype="org" meta.entityname="HDFC Life" meta.hostid="261" meta.entityid="HDFC Life">HDFC Life</keyword> and <keyword id="21278696" type="General" weightage="20" keywordseo="ICICI-Prudential-Life" source="keywords">ICICI Prudential Life</keyword>, as it placed bets on India's growth sectors, including infrastructure, while the private sector concentrated its bets on tech, consumer and consumer-related <keyword id="19910880" type="General" weightage="20" keywordseo="BFSI" source="keywords">BFSI</keyword> companies. LIC's stock has gained nearly 79% from Rs 620 on June 18, 2023, to Rs 1,109.15 at the closing on Tuesday, according to stock exchange data. In contrast, HDFC Life gave a negative return with Tuesday's closing price of Rs 646.55 on the BSE as compared to Rs 666.55 a year back. ICICI Prudential Life Insurance Co delivered a return of 12%, considering its stock price rise from Rs 582 on June 18, 2023, to Rs 654.10 on June 16, 2024. Over the past one year, <keyword id="19898108" type="General" weightage="20" keywordseo="SBI" source="keywords">SBI</keyword> Life Insurance shares have risen from Rs 1,314 to Rs 1,621.20, delivering a return of 23%. Capital market analysts said <keyword id="19935977" type="General" weightage="20" keywordseo="insurance-companies" source="keywords">insurance companies</keyword> make money in two ways - charging premiums for policies and then investing the premiums into assets. It is the latter that generates the bigger delta in profits, thus impacting value creation and managing risks. Global majors, including Warren Buffet-owned Berkshire Hathaway, have been successful due to their ability to make superior investments. Most Indian insurance companies are yet to capitalise on the emergence of the country's <keyword id="19997284" type="General" weightage="100" keywordseo="infrastructure-sector" source="keywords">infrastructure sector</keyword>, analysts said. Indian insurance companies have concentrated investments in the BFSI, IT, and consumer sectors - all of which have been underperformers in the recent past. Only 8-10% of their investments are in the infrastructure sector. This is far less when compared to global standards. Large global insurance companies -- such as Allianz, Nippon Life Insurance, and Metlife, and other insurers like Berkshire Hathaway -- have much larger exposure ranging from 15 to 30% to the infrastructure sector, analysts noted. Over the past few years, global insurers have been increasingly considering infrastructure investments as 'core' investments as the stable and long-term cash flows of infrastructure assets naturally align with the liabilities of insurers. Additionally, infrastructure assets have defensive characteristics of high barriers to entry, strong pricing power, structural growth, and predictive cash flows, and listed infrastructure can provide investors with inflation-protected income and solid capital growth. <h2>Infra sector outperforming all</h2>For India, a strong government focus on the sector with large spending, supporting initiatives and encouraging policies, and improving governance has helped the infrastructure industry has come of age. This has helped the infra sector to outperform all other sectors, according to analysts. They said the high focus on retail loans, and the strategic reluctance to look at infrastructure for growth opportunities is proving detrimental for the shareholders of such companies. SBI, with its higher exposure to the infrastructure sector, has seen its stock gain 48% in the year (from Rs 592 to Rs 880.95 on Tuesday), while those of its private counterparts HDFC Bank, Kotak Mahindra Bank, ICICI Bank and Axis Bank have gained only in the range of (-)3%to 24%. Kotak and HDFC Banks with negligible exposure to the infrastructure sector are the worst performing, with their shares giving a negative return, stock exchange data showed. Kotak Mahindra Bank shares were at Rs 1,895 on June 18, 2023, and closed at Rs 1,805.20 on Tuesday. HDFC Bank closed at Rs 1,619.20 on BSE on Tuesday, down from Rs 1,679 a year back.

Exposure to India's infra sector helps LIC, SBI outshine peers

<ul><li>State Bank of India is providing a pre-approved loan amid the Coronavirus pandemic.</li><li>The bank’s customers can apply for the loan using the YONO app.</li></ul>India is currently under a nationwide lockdown and only essential services have been allowed to operate. This has resulted in huge losses to businesses who have adopted cost cutting measures such as letting employees go, putting employees on leave without pay and more. While the lockdown is expected to end on May 3 in most states, there is a chance that the lockdown may be extended further in some areas. The lockdown has not only affected companies, but also employees and traders. What is the pre-approved personal loan from SBI? To help those affected by the Coronavirus pandemic and in need of emergency funds, the State Bank of India introduced an emergency loan facility. What is the interest rate charged for this emergency loan? The emergency loan facility is available at an interest rate of 7.25% per annum, which is much lower than the usual interest rate on personal loans which starts from 10.50% per annum. What are the features of the pre-approved loan? <ul><li>As it can be availed online, customers can apply for the loan at any time.</li><li>No physical documentation is required to apply for the loan.</li><li>The loan is processed instantly, and the processing fees are low.</li></ul>Who can apply for the emergency loan from SBI? The loan is not available to everyone. It can only be available by those customers that have already been approved by the bank based on their income and spending habits. How to check eligibility for the emergency loan? To check if you are eligible for the loan, send the following SMS to 567676 – “PAPL &lt;space&gt; &lt;last 4 digits of your bank account&gt;” How to apply for this emergency loan? If you are eligible to apply for the loan, follow the below steps – <ul><li>Download the YONO SBI app on your <a href="https://play.google.com/store/apps/details?id=com.sbi.lotusintouch&amp;hl=en_IN">Android</a> or <a href="https://apps.apple.com/in/app/yono-sbi-banking-and-lifestyle/id1231393474">iOS</a> device.</li><li>Click on “Pre-approved loan”.</li><li>Now, select the tenure and loan amount.</li><li>Now, enter the OTP and the amount will be credited to your bank account.</li></ul>See also: <a href="https://www.businessinsider.in/steps-to-check-account-balance-in-sbi/articleshow/69607243.cms">How to check account balance of SBI</a> <a href="https://www.businessinsider.in/finance/news/how-to-avail-three-month-moratorium-for-sbi-emi-and-credit-cards/articleshow/74945199.cms">How to avail three-month moratorium for SBI EMI and credit cards</a> <a href="https://www.businessinsider.in/india/news/how-to-avail-three-month-moratorium-for-icici-bank-emi-and-credit-cards/articleshow/74941936.cms">How to avail three-month moratorium for ICICI Bank EMI and credit cards </a>

How to apply for emergency loan from SBI

<div type="image" title="RBI" agency="ANI" height="900" width="1200" msid="105464045" hostid="261" sizebytes="40796" caption="&amp;lt;p&amp;gt;RBI&amp;#39;s vigilance: New consumer credit norms to bolster India&amp;#39;s financial stability amidst surging loan growth&amp;lt;/p&amp;gt;"></div>In a proactive move aimed at mitigating potential systemic risks associated with the rapid growth of <keyword id="437168" type="General" weightage="20" keywordseo="consumer-credit" source="Orion">consumer credit</keyword>, the Reserve Bank of India (<keyword id="30067" type="General" weightage="20" keywordseo="rbi" source="Orion">RBI</keyword>) has implemented stringent measures, impacting both banks and non-bank financial institutions (NBFIs). <keyword id="125045" type="General" weightage="20" keywordseo="fitch-ratings" source="Orion">Fitch Ratings</keyword> has provided insights into the repercussions of these regulatory adjustments on the financial sector. The central focus of the regulatory adjustments is to mandate banks and NBFIs to allocate more capital against unsecured consumer credit. Fitch Ratings views these changes as a credit-positive effort by regulatory authorities to control emergent risks in consumer credit. Notably, the growth of unsecured credit card loans and personal loans by banks witnessed an impressive 29.9 per cent and 25.5 per cent year-on-year increase, respectively, in the first half of the financial year ending March 2024. This surge in consumer credit raised concerns, prompting the need for preventive measures. The increasing exposure to unsecured consumer credit considered a riskier <keyword id="6360217" type="General" weightage="20" keywordseo="loan" source="Orion">loan</keyword> category, signals a greater risk appetite among banks and NBFIs. This trend is attributed to the institutions seeking to protect net interest margins (NIMs) amid fierce competition for secured retail loans. The regulatory changes introduce higher risk weightings, aligning for both banks and NBFIs. While risk weightings for credit-card lending increase to 125 per cent (from 100 per cent previously) for NBFIs, banks maintain a higher 150 per cent. Microfinance is excluded from higher risk weights for NBFIs, distinguishing it from banks. Fitch Ratings estimates that the measures may lower the common equity Tier 1 (CET1) ratio of the banking system by around 30 basis points. The impact varies for Fitch-rated banks, ranging from 6 to 34 basis points, with a double-digit impact expected for private banks like State Bank of India (SBI) and Canara Bank. Private banks, with relatively better CET1 capitalization, are expected to maintain reasonable capitalization even after the changes. The measures, however, may not significantly lower banks' capital scores or standalone Viability Ratings (VRs), though SBI's VR headroom could narrow. Fitch-rated NBFIs, including Shriram Finance Limited, Muthoot Finance Ltd, IIFL Finance Limited, and Manappuram Finance Limited, witness an impact on capitalization ratios, loan growth, and future asset quality. However, the overall impact is expected to be limited, with these entities benefiting from reduced systemic risk. NBFIs may experience a rise in bank funding costs by 40 to 60 basis points. This assumes that banks pass on capital costs from higher risk weights on loans to NBFIs. Larger NBFIs are better positioned to negotiate favorable terms with banks, while lower-rated entities could face greater increases. Loans to housing finance companies and NBFIs eligible for priority sector classification are excluded from the adjustment, benefiting entities like Shriram due to their priority sector exposure. The regulatory changes aim to strike a balance between fostering consumer credit growth and preventing the buildup of systemic risks. The phased implementation of these measures underscores the regulators' commitment to maintaining financial stability while allowing financial institutions time to adapt to the new norms. As India's financial landscape undergoes these adjustments, stakeholders are closely monitoring the impact on lending practices, risk management, and overall economic resilience. (ANI)

RBI's vigilance: New consumer credit norms to bolster India's financial stability amidst surging loan growth

Mumbai, May 10 () State Bank of India (SBI) on Sunday clarified that it is not offering any kind of emergency loans to customers through its YONO platform. Media reports have stated that the public sector lender is offering emergency loans of up to Rs 5 lakh within '45 minutes'. The loans will be given at an interest rate of 10.5 per cent and EMIs will start after a period of six months, the reports said. "There is a news being widely reported about 'SBI Emergency Loan scheme via YONO'. We would like to clarify that SBI is not offering any such loan at present. We also urge our customers not to believe on these rumours," the bank said in a statement. SBI, however, said it is in the process of introducing a pre-approved personal loan offering through YONO to provide relief to its salaried customers who are facing cash-flow problems due to the COVID-19 crisis. YONO, or 'You Only Need One', is a digital service platform of SBI which provides its customers all-in-one solutions for banking, shopping, lifestyle and investment needs. HV ABMABM

Not offering emergency loans through YONO platform: SBI

<ul><li>Creditors of DHFL, which include about 20 Indian banks and many other financial institutions, would recover an aggregate of ₹38,000 crore ($5 billion) from the resolution process of the firm and acquisition by Piramal Enterprises.</li><li>Many Indian banks had exposure to the crisis hit housing finance firm Dewan Housing Finance Corporation including most of the public sector banks.</li><li>Analysts say this is one of the biggest resolutions till date and the move will bring recovery into the banking sector.</li></ul><keyword id="6400918" type="General" weightage="20" keywordseo="piramal-group" source="Orion">Piramal Group</keyword> has completed the acquisition of crisis-hit Dewan Housing Finance Corporation (DHFL) for ₹34,250 crore. DHFL’s creditors will recover 46% of their pending dues via the resolution process, the company said in a statement. The amount of ₹34,250 crore ($4.61 billion) paid by Piramal will be through a combination of cash and non-convertible debentures and an amount of around ₹3,800 crore will be paid to the creditors from the cash balance available with DHFL. Analysts say this is one of the biggest resolutions till date to financial institutions after the <a href="https://www.business-standard.com/about/what-is-il-fs-crisis">IL&amp;FS crisis</a>. About 19 Indian banks have exposure to the crisis-hit housing finance firm including most of the public sector banks. Shares of the top five lenders moved up on Wednesday after the company said it will pay ₹38,000 crore in total to all creditors. <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Banks </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">% change in stock price </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">SBI </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">3.33% </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Bank of India </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">3.68% </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Canara Bank </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">2.87% </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Union Bank of India </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">3.71% </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Bank of Baroda </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">2.27% </td></tr></tbody><tbody></tbody><tbody></tbody></table> “DHFL’s resolution has finally happened and the recovery upgradation and reversal provision will be visible in banks (books) in the coming quarters which is positive for the sector and the banks having exposure to the firm,” Siddharth Purohit, research analyst at SMC Securities told Business Insider. There are about 20 Indian banks and many other financial institutions that have lent to DHFL over a period of time. Here is a list of top five lenders to the firm: <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Banks </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Claims (in Rs billions) </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Admitted (in Rs billions) </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Rejected (in Rs billions) </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">SBI (including SBI Singapore) </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">100.83 </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">71.71 </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">29.12 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Bank of India </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">41.26 </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">41.26 </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Canara Bank (Syndicate Bank) </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">26.82 </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">21.52 </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">5.31 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Union Bank of India </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">24.13 </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">23.86 </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">0.27 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Bank of Baroda </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">20.75 </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">20.21 </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">0.54 </td></tr></tbody><tbody></tbody><tbody></tbody></table>Source: ICICI Securities research report, January 19, 2021 How did one of the country’s biggest crises take place? DHFL, a non-banking financial company, primarily gives loans to home buyers in India’s tier 2 and tier 3 cities. After the IL&amp;FS crisis emerged, in September 2018, DHFL’s stock got hammered, by as much as 60%. Then, in January 2019, <a href="https://economictimes.indiatimes.com/markets/stocks/news/dhfl-plunges-after-cobrapost-expose-on-dubious-loans/articleshow/67749239.cms">Cobrapost </a>claimed that the company’s promoters were involved in a ₹31,000 crore scam siphoning off money. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[ ]]></cdata></div> On June 4, 2019, the company failed to pay about ₹900 crore worth of interest, prompting ratings agencies to downgrade all of its commercial papers. Adding to the woes, allegations of dubious financial transactions continued to emerge against Kapil Wadhawan (the then chairman and managing director) and Dheeraj Wadhawan (then a non-executive director). In October last year, the enforcement directorate (ED) even conducted raids at several DHFL offices and promoter residences. Putting an end to the fiasco, on November 29, 2019, the Reserve Bank of India (RBI) initiated insolvency proceedings against DHFL. To the company’s rescue, in January, 2021, billionaire Ajay Piramal's Piramal Group emerged as the preferred bidder for debt-laden mortgage lender DHFL. After two years of the crisis, many banks who had lent money to the housing firm will receive part of their loans along with a lesson learnt. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/telecom/news/airtel-supplier-tejas-networks-up-six-fold-before-pli-approval/articleshow/86607753.cms">This telecom equipment maker is up six fold in one year while waiting for production linked incentives</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/aditya-birla-sun-life-amcs-ceo-says-mutual-fund-industry-to-see-many-mergers-in-next-couple-of-years/articleshow/86606968.cms">Mutual fund industry to see many mergers in next couple of years, says Aditya Birla Sun Life AMC’s CEO</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/elon-musk-leads-the-pack-mukesh-ambani-in-top-10-here-are-the-richest-people-on-the-planet/slidelist/86609457.cms">Elon Musk leads the pack, Mukesh Ambani in top 10 — Here are the richest people on the planet</a>

India’s 20 state owned banks get about $5 billion back from a loan written off and they are thrilled

<ul><li>More than a month after the Indian government announced the MSME loans scheme, total loans disbursed under the scheme have crossed only 5% of the target.</li><li>Cautious approach by private banks could be one of the reasons behind the slow progress.</li><li>In the public sector, State Bank of India is leading the charge, having sanctioned more than ₹14,000 crore loans to MSME borrowers.</li></ul>Small businesses are not getting the loans they need to recover from the COVID-19 shock. According to <a href="https://twitter.com/Anurag_Office/status/1272845054898561027">data released</a> by the Ministry of Finance, public sector banks have sanctioned ₹32,050 crore loans and disbursed ₹16,031 crore, which is a little over 5% of the ₹3 lakh crore package announced by the government. Private banks are yet to play their part. <div type="image" title="Share of lenders across MSME segments" msid="76438221" hostid="261" caption="&amp;lt;p&amp;gt;Share of lenders across MSME segments&amp;lt;/p&amp;gt;"></div> As part of the coronavirus stimulus package, the Indian government announced an Emergency Credit Guarantee Line Scheme (ECLGS) to help micro, small and medium enterprises (MSME) emerge from the coronavirus crisis on May 13. Further, Finance Minister Nirmala Sitharaman had to convene a meeting on June 15 with the heads of major private banks to prod them to ensure effective roll out of the <a href="https://www.businessinsider.in/india/news/fm-nirmala-sitaraman-announces-six-steps-for-msme-sector/articleshow/75717258.cms">₹3 lakh crore ECLG scheme</a>. But, Business Insider, as well <a href="https://www.bloombergquint.com/business/government-guaranteed-msme-loan-program-runs-into-early-glitches">other reports</a>, found that suggest that private banks, like ICICI Bank, HDFC Bank, and Axis Bank to name a few, have not stepped up to task yet. The fact that <a href="https://economictimes.indiatimes.com/small-biz/sme-sector/only-30-to-40-msme-units-have-opened-for-work-in-unlock-phase-1-fismes-animesh-saxena/articleshow/76418627.cms">less than 40% of the MSMEs</a> have reopened their business since the economy started opening up on June 1 may also be a reflection of the same. <div type="twitter" handle="FinMinIndia" handlename="Ministry of Finance" image="http://pbs.twimg.com/profile_images/1135488202616102914/DkD8hlzI_normal.png" favoritecount="738" retweetcount="142" status="FM Smt. @nsitharaman chairing a meeting through VC with Major Pvt Banks &amp; NBFC to ensure effective roll out of ECLG… https://t.co/Hxxs7SeBMS" createdat="1592217837000" id="1272479954895163392"></div> <div type="Article" hostid="261" msid="76154606" title="Here’s how MSMEs can apply for loans from SBI, ICICI Bank and others" mstype="2" mssubtype="0"></div> Private banks are taking a cautious approach Some MSME borrowers told Business Insider that the private banks are taking a cautious approach for now. <div type="image" title="NPA rate across MSME segment" msid="76438269" hostid="261" caption="&amp;lt;p&amp;gt;NPA rate across MSME segment&amp;lt;/p&amp;gt;"></div> Some of the borrowers said their respective banks asked them to wait for a few more days before applying for the loan. “I was asked to come back next week to apply for the <keyword id="1524449" type="PERSON" weightage="20" keywordseo="MSME-loan">MSME loan</keyword>. The relationship manager told me that they’re awaiting instructions from their head office,” a enterprise owner in Hyderabad said on the condition of anonymity. Even for those who have an existing relationship with the banks, the formal procedure to disburse loans will take a few more days. Queries sent to leading private sector banks – HDFC Bank and Axis Bank⁠— for a comment on the status of the implementation of the scheme remain unanswered. An ICICI Bank spokesperson responded, saying, “ICICI Bank is participating in the Emergency Credit Line Guarantee (ECLG) scheme. We have executed the undertaking with National Credit Guarantee Trustee Company (NCGTC) to enrol as a Member Lending Institution (MLI) under the ECLG scheme.” ICICI Bank also said that it is reaching out to eligible customers via email and SMS. However, at the time of writing, none of the borrowers Business Insider spoke to have received any communication from the bank. The ICICI Bank spokesperson told us that the bank has sent out communication already - we have reached out to our sources to get an update on this. <div type="Article" hostid="261" msid="75717258" title="Finance Minister Nirmala Sitharaman announces six measures for the MSME sector" mstype="2" mssubtype="0"></div> Public sector banks pick up the pace, SBI leads the charge In contrast, public sector banks have picked up pace in sanctioning and disbursing loans under this scheme. <div type="image" title="Bank-wise SME segment lending" msid="76438247" hostid="261" caption="&amp;lt;p&amp;gt;Bank-wise SME segment lending&amp;lt;/p&amp;gt;"></div> State Bank of India, the largest bank in the country, is leading the charge – as of June 12, it had sanctioned ₹14,559 crore worth of loans, and ₹8,776 crore loans had already been disbursed. We reached out to credit officers in some of these public sector banks, who told us that they have already sent out communication to eligible MSME borrowers. While some of them accepted the ECLGS loan, several others had to be convinced by the officers. Since the government has fixed October 31 as the deadline for the execution of this scheme, credit officers are working to meet their targets. Private banks could pick up the pace in the coming weeks Branch managers at private banks blamed procedural delays and said that the pace would pick up in the coming weeks, depending on the interest shown by MSME borrowers. One of the reasons behind the slow uptake could be the lack of interest shown by MSME borrowers, who are either unsure about the survival of their business, or the extension of debt moratorium has eased liquidity. Confusion about the eligibility, and other conditions of the scheme could also be behind the slow uptake, <a href="https://www.bloombergquint.com/business/government-guaranteed-msme-loan-program-runs-into-early-glitches">according</a> to Vishal Kumar, co-founder of MSMEx which is an advisory firm for small businesses. At the time of writing, <a href="https://www.icicibank.com/business-banking/finance/emergency-credit-line.page?">ICICI Bank</a> and <a href="https://www.axisbank.com/business-banking/avail-msme-and-corporate-financing/general-information-policies/policy-on-lending-to-mses#menuTab">Axis Bank</a> had listed out the details of loans under ECLGS on their websites, while we were unable to confirm this for HDFC Bank. The eligibility, credit amount and interest rate for each MSME borrower will be decided based on their credit ratings. Security-backed loans attract lower interest rates when compared to government-guaranteed loans, according to the details mentioned on ICICI Bank’s <a href="https://www.icicibank.com/business-banking/finance/emergency-credit-line.page?">website</a>. Since banks are required to update the loan data every 15 days after registering under ECLGS, we should have a clearer picture in the next one or two weeks. SEE ALSO: <a href="https://www.businessinsider.in/business/news/how-to-apply-for-msme-loan/articleshow/76154606.cms">Here’s how MSMEs can apply for loans from SBI, ICICI Bank and others</a> <a href="https://www.businessinsider.in/india/news/fm-nirmala-sitaraman-announces-six-steps-for-msme-sector/articleshow/75717258.cms">Finance Minister Nirmala Sitharaman announces six measures for the MSME sector</a> <a href="https://www.businessinsider.in/stock-market/news/small-businesses-with-good-turnover-can-now-be-listed-and-the-indian-government-will-buy-the-shares/articleshow/76136857.cms">Small businesses with ‘good turnover’ looking to get listed on the stock market will have the Indian government will buying their shares</a>

Only 5% of the government’s MSME emergency loan package is disbursed after a month ⁠— private banks are sitting tight

<ul> <li>Indian Bank, Andhra Bank, and Union Bank announced emergency credit lines for their customers to tide through the Coronavirus lockdown.</li> <li>Bank of India has also assured customers that a credit facility is in the works.</li> <li>The State Bank of India (SBI) was the first to announce its Covid-19 Emergency Credit Line on March 20.</li> <li><a href="https://www.businessinsider.in/searchresult.cms?query=coronavirus&amp;sortorder=effectivedate">Follow the comprehensive coverage of the coronavirus pandemic and its impact, and other useful resources that can help you in the fight on Business Insider India.</a></li></ul>Public sector banks including the State Bank of India, Union Bank, Andhra Bank and Indian Bank announced emergency credit lines for customers who need extra cash to tide through the Coronavirus lockdown. These emergency loans are available to both companies as well as retail customers depending on the bank. Indian Bank, for example, has four categories of loans for corporates, small businesses, salaried employees and pensioners. Instead of having to go to the bank, customers can send their requests in via direct messages on Twitter. <div type="twitter" handle="MyIndianBank" handlename="Indian Bank" image="http://pbs.twimg.com/profile_images/1034726030429175809/0KlRj2aZ_normal.jpg" favoritecount="43" retweetcount="20" status="To financially help you cope during these difficult times of #coronavirus outbreak, Indian Bank unveils Credit Line… https://t.co/jLHjntIcZs" createdat="1585069664000" id="1242498342724096001"></div> Union Bank launched a Covid Emergency Line of Credit (CELC), which is available to all of the bank’s existing customers. <div type="twitter" handle="UnionBankTweets" handlename="Union Bank of India" image="http://pbs.twimg.com/profile_images/876052291786162176/3bEzni3f_normal.jpg" favoritecount="123" retweetcount="39" status="In wake of #coronavirus outbreak, #UnionBankofIndia unstintingly supports all its existing customers with the launc… https://t.co/G8GCpCqumR" createdat="1585062720000" id="1242469217636503552"></div> India’s largest lender, the State Bank of India (<a href="https://www.facebook.com/notes/state-bank-of-india/sbi-commits-025-of-annual-profit-to-help-fight-covid-19/3152724334778343/">SBI</a>) led the charge by committing 0.25% of annual profits towards fighting Covid-19 on March 20. The bank will use these funds to support those healthcare systems which can help reach under-priviledged individuals. In addition, SBI launched the Covid-19 Emergency Credit Line (CECL) that customers can avail till 30 June 2020. Up to ₹200 crore can be released with loans issued at an interest rate of 7.25%. Andhra Bank is also setting up a short-term credit facility, but only for small businesses and corporate borrowers. <div type="twitter" handle="bank_andhra" handlename="Andhra Bank" image="http://pbs.twimg.com/profile_images/666145848581976064/tREzEtKy_normal.jpg" favoritecount="25" retweetcount="10" status="To tide over #coronavirus affects, #AndhraBank unveils hassle free special short term credit product to MSME &amp; Cor… https://t.co/1byWsfbWjR" createdat="1585125886000" id="1242734155034591232"></div> Other banks like Bank of India announced that they have imminent plans to launch credit facilities, but official notifications are yet to be announced. <div type="twitter" handle="BankofIndia_IN" handlename="Bank of India" image="http://pbs.twimg.com/profile_images/981431940460023808/YUPWQwnT_normal.jpg" favoritecount="38" retweetcount="10" status="Emergency #credit_line will be available very soon to all #COVIDー19 affected customers. This is with the view to pr… https://t.co/4kQ1Ot6Zk6" createdat="1585119443000" id="1242707132853571587"></div> According to the Ministry of Corporate Affairs, spending CSR funds to fight the Coronavirus pandemic is an eligible CSR activity. See also: <a href="https://www.businessinsider.in/india/news/coranavirus-cases-in-kerala-news-and-updates/articleshow/74775194.cms" style="text-decoration-line: line-through;">Coronavirus cases in Kerala news and updates</a> <a href="https://www.businessinsider.in/india/news/coranavirus-cases-in-tamil-nadu-news-and-updates/articleshow/74785909.cms" style="text-decoration-line: line-through;">Coronavirus cases in Tamil Nadu news and updates</a> <a href="https://www.businessinsider.in/india/news/coronavirus-11-suspects-flee-from-navi-mumbai-as-maharashtra-cases-climbs-to-33/articleshow/74648611.cms" style="text-decoration-line: line-through;">Coronavirus cases in Maharashtra news and updates</a>

These banks are giving out emergency funds to help customers tide through the Coronavirus lockdown

<ul><li>The number of <keyword id="6358354" type="General" weightage="100" keywordseo="msme" source="Orion">MSME</keyword>s have gone down in 2021-22 compared to 2020-21 because a number of MSMEs have grown bigger and crossed the MSME threshold. </li><li>MSMEs across all sectors have shown strong resilience to bounce back post the pandemic-induced slowdown. </li><li>The <keyword id="4656676" type="General" weightage="80" keywordseo="udyam" source="Orion">Udyam</keyword> portal and the Emergency Credit Line Guarantee Scheme have helped MSMEs to weather the storm. </li></ul>The micro, small and medium enterprises (MSME) sector is charting a new story post pandemic, with credit growth to MSMEs consistently higher – both on a year-on-year basis and also in comparison with larger industries, according to SBI Research. Incentives provided by the Emergency Credit Line Guarantee Scheme (ECLGS), coupled with lower gross non-performing asset (GNPA) ratios have helped in boosting credit to MSMEs, the SBI Research report said. Interestingly, the number of MSMEs have gone down in 2021-22 compared to 2020-21 because a number of MSME units have grown bigger and crossed the ₹250 crore turnover threshold that defines an MSME unit under the new definition, enforced in 2020. A company bigger than ₹250 crore is considered a mid-sized corporate firm. MSMEs have shown strong resilience to bounce back from the pandemic- induced slowdown seen in 2020. In some sectors that were not affected by the pandemic – like hospitality, construction, NBFCs, power, metals and so on, the credit outstanding as of March 2022 was almost 3x that seen in March 2018. There were sectors that were affected but have recovered from the pandemic – like edible oil, printing, consumer durables, pharmaceuticals, jute, aviation, etc, – with credit expansion for some of these in March 2021 lower than the March 2018 levels, but these have staged a smart recovery in March 2022, the report said. Some industries like mining, petrochemicals, cement, FMCG and others were deeply impacted by the pandemic but have almost recovered. A couple of initiatives from the Government of India may have helped MSMEs weather the storm and chart a strong growth story, according to SBI Research. Udyam portal: Turning informal micro enterprises formal In July 2020, the Government of India launched <keyword id="15931646" type="General" weightage="50" keywordseo="udyam-assist-platform" source="Orion">Udyam Assist Platform</keyword> (UAP) to bring all the Informal Micro Enterprises (IMEs) – which constitute around 99% of the MSMEs in the country – into the formal ambit without complex and complicated paperwork. The UAP will enable IMEs who aren’t registered under GST to get a registration certificate based on information with Banks/NBFCs. The Udyam registration may also help MSMEs in availing the benefits of multiple schemes of the <keyword id="5713874" type="General" weightage="50" keywordseo="ministry-of-msmes" source="Orion">ministry of MSMEs</keyword> such as Credit Guarantee Scheme, Public Procurement Policy, additional edge in government tenders and protection against delayed payments by corporates, etc. The IMEs will also become eligible for priority-sector lending by banks, be able to get collateral-free loans from banks and also be able to get licences, approvals and registrations easily. ECLGS: A saviour during pandemic The ECLG scheme acted as an enabler and helped MSMEs navigate the pandemic better. While at least 14.6 lakh MSMEs accounts were saved due to the ECLG scheme in absolute terms, MSME loan accounts worth ₹2.2 lakh crore improved since the inception of the ECLG scheme for the entire banking industry, as per SBI Research. This means that around 12% of the outstanding MSME credit has been saved from slipping into non-performing assets (NPAs) because of the ECLG scheme. Of the 14.6 lakh MSMEs accounts that were saved due to the ECLG scheme, almost 93.8% were in the <keyword id="16232960" type="General" weightage="50" keywordseo="micro-and-small" source="Orion">Micro and Small</keyword> category. If such units slipped into NPA, 1.65 crore workers would have become unemployed.

MSME sector is on a strong growth trajectory post the pandemic: SBI Research

<ul><li>The government has revised the definition of MSMEs and announced various measures to help the companies.</li><li>The measures include collateral-free loans worth ₹3 lakh crore for MSMEs from Banks and NBFCs. </li></ul>As part of the Coronavirus stimulus package, the government had <a href="https://www.businessinsider.in/india/news/fm-nirmala-sitaraman-announces-six-steps-for-msme-sector/articleshow/75717258.cms">announced</a> various measures for the Micro, Small and Medium Enterprises (MSME) — including collateral-free loans, additional debt and equity infusion. The government had also recently revised the definition of MSMEs by increasing the threshold limit for investment in these units. The government had announced an emergency credit line of ₹3 lakh crore for MSMEs from Banks and NBFCs. Finance Minister Nirmala Sitharaman’s office in a tweet mentioned that the public sector banks (PSBs) have sanctioned loans worth ₹3,200 crore on June 1, 2020. <div type="twitter" handle="nsitharamanoffc" handlename="NSitharamanOffice" image="http://pbs.twimg.com/profile_images/1175978597338664966/vcW1JOvB_normal.jpg" favoritecount="1988" retweetcount="490" status="On a single day 1 June ‘20, #PSBs have sanctioned collateral-free loans worth Rs 3,200 crore through the Emergency… https://t.co/lsKUCrhqIP" createdat="1591005755000" id="1267396114560331778"></div> The loans availed by non-banking financial companies (NBFCs) as part of the government’s initiative are not required to pay any guarantee and no collateral is required. The tenure has been fixed at four years, with a moratorium of 12 months on the principal payment. Banks that provide MSME loans <ul><li>State Bank of India</li><li>ICICI Bank</li><li>HDFC Bank</li><li>Union Bank of India</li><li>Indian Bank</li><li>Central Bank of India</li><li>Allahabad Bank</li><li>Oriental Bank of Commerce</li><li>Bajaj FinServ</li></ul>Documents required <ul><li>Duly filled application form.</li><li>Residence proof: Passport, telephone bill, electricity bill, ration card, lease agreement, trade license and sales tax certificate.</li><li>Identity proof: Passport, PAN, voter ID card and driving license.</li><li>Age proof: Passport, PAN, voter ID card.</li><li>Business registration proof.</li><li>Bank statement.</li><li>Partnership deed.</li><li>Company PAN card.</li><li>P&amp;L and Balance Sheet of the last 2 years.</li><li>Sales tax documents.</li><li>Municipal tax documents.</li></ul><keyword id="9332715" type="UNKNOWN" weightage="20" keywordseo="how-to-apply-for-msme-loan">How to apply for MSME loan</keyword> <ul><li>Visit the Udyog Aadhaar <a href="https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx">website</a> and register your MSME.</li><li>Enter your Aadhaar number, name and click on ‘Validate and generate OTP’.</li><li>Enter the OTP and click on ‘Validate’,</li><li>Enter the required details in the application form and click on ‘Submit’.</li><li>You will now receive an OTP on your mobile number. Enter the OTP and click on ‘Final Submit’.</li></ul>SEE ALSO: <a href="https://www.businessinsider.in/india/news/fm-nirmala-sitaraman-announces-six-steps-for-msme-sector/articleshow/75717258.cms">Finance Minister Nirmala Sitharaman announces six measures for the MSME sector</a> <a href="https://www.businessinsider.in/business/corporates/news/bajaj-finance-share-price-and-earnings-expectation/articleshow/75751469.cms">Bajaj Finance’s quarterly earnings may not reflect the real potential for rebound⁠ after Sitharaman’s big push for MSME</a> <a href="https://www.businessinsider.in/business/news/the-proposed-new-definition-of-msme-will-make-90-of-indifis-borrowers-micro-says-ceo/articleshow/75740897.cms">The proposed new definition of MSME will make 90% of Indifi’s borrowers ‘micro’, says CEO</a> <a href="https://www.businessinsider.in/stock-market/news/small-businesses-with-good-turnover-can-now-be-listed-and-the-indian-government-will-buy-the-shares/articleshow/76136857.cms">Small businesses with ‘good turnover’ looking to get listed on the stock market will have the Indian government will buying their shares</a>

Here’s how MSMEs can apply for loans from SBI, ICICI Bank and others

Customers, especially in retail verticals could be having a feel of future run expected in interest rates, and might be front loading their purchases in days to come giving a fillip to consumer demands in select niche areas, said <keyword id="2017241" type="General" weightage="80" keywordseo="sbi-research" source="Orion">SBI Research</keyword> in a report. The sector-wise data for April indicated that credit off-take has happened in almost all sectors. Personal loans segment continued to perform well, registering an acceleration in growth to 14.7 per cent in April 2022 and contributed around 90 per cent of the incremental credit during the month, primarily driven by housing, vehicle loans and other personal loans segments, the report said on Tuesday. The omicron fuelled days brought the bleak memories from last year. <keyword id="16898" type="General" weightage="80" keywordseo="spike" source="Orion">Spike</keyword> in caseloads in select developed economies scared the psyche, the scars of past coming to the fore. Businesses caught unaware previously and braving essential commodities as well as specialised essentials like chips shortages kept the expectations short.Against that backdrop, the report said that the GDP numbers did not disappoint much and it inspired the market. <keyword id="3658" type="General" weightage="50" keywordseo="india" source="Orion">India</keyword>'s gross domestic product during fiscal year 2021-22 is estimated at 8.7 per cent as compared to a contraction of 6.6 per cent in the year 2020-21, official data showed. The GDP grew 4.1 per cent year on year in Q4FY22 as against 1.6 per cent during the same quarter of FY21. By far, trade, hotels, transport, communication and services related to broadcasting are the only sectors which are still not out of the woods post the pandemic. The report said these sectors will reach or cross the pre-andemic levels by Q1FY23. The global economic outlook is marred with downside risks due to the ongoing geopolitical upheaval and its impact on trade, output and prices. Sharp increase in most commodity prices, significant tightening of financial conditions due to frontloaded monetary policy actions and high inflation are posing financial stability concerns. "The <keyword id="188983" type="General" weightage="20" keywordseo="world-economic-outlook" source="Orion">World Economic Outlook</keyword> (WEO) has cut its global growth forecast for 2022 relative to its January 2022 projection by 0.8 percentage points to 3.6 per cent. <keyword id="1334" type="General" weightage="20" keywordseo="china" source="Orion">China</keyword>'s economy remained deep in a slump in May as lockdowns continued to weigh on activity. The downward revision is sharper for emerging markets and developing economies than for advanced economies," the report added. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="http://www.businessinsider.in/tech/mobile/news/moto-g82-5g-expected-to-launch-in-india-on-june-9-expected-price-specs-and-everything-you-need-to-know/articleshow/91919825.cms">Moto G82 5G expected to launch in India on June 9 – expected price, specs and everything you need to know</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="http://www.businessinsider.in/cryptocurrency/news/an-indian-home-can-live-for-a-year-with-the-energy-it-needs-to-mine-a-single-bitcoin/articleshow/91916128.cms">An Indian home can live for a year with the energy it needs to mine a single Bitcoin</a>

Consumers in retail verticals may front load their purchases in niche areas due to rate hikes: SBI Research

New Delhi, Jun 16 () State Bank of India on Tuesday said it has disbursed Rs 8,700 crore under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector, pummelled by the coronavirus-induced lockdown. As per the directions of the finance ministry, SBI and other banks rolled out the Guaranteed Emergency Credit Line (GECL) loan product to support MSMEs and business enterprises as per the guidelines of NCGTC. ECLGS is the biggest fiscal component of the mega Rs 20-lakh crore package announced last month. Under the scheme, 100 per cent guarantee coverage is being provided by the National Credit Guarantee Trustee Company (NCGTC) for additional funding of up to Rs 3 lakh crore to eligible MSMEs and interested MUDRA borrowers in the form of a GECL facility. "The bank has sanctioned GECL aggregating Rs 15,000 crore to 1.5 lakh MSME customers. SBI so far has disbursed loans worth Rs 8,700 crore," SBI said in a statement. Additional supportive measures such as COVID Emergency Credit Line, re-assessment of working capital limits, and restructuring of advances are also being made available to MSME customers, it said. "MSMEs formed a very crucial part of the announcements made under the 'Atmanirbhar Bharat Abhiyan' by the Government of India wherein MSMEs were defined. To empower them in the wake of the COVID-19 crisis, SBI organized more than 125 E-Town Hall Meetings from May to date," it said. As per directives of the Department of Financial Services, it said, SBI conducted Circle level meetings to reach out to MSME customers and explain the various relief and financial support measures provided to them to fight the COVID-19 outbreak. The main objective of the scheme is to provide an incentive to member lending institutions to increase access and enable availability of additional funding facility to MSME borrowers, in view of the economic distress caused by the COVID-19 crisis. The scheme gives the lenders 100 per cent guarantee for any losses suffered by them due to non-repayment of the GECL funding by borrowers. All MSME borrower accounts with an outstanding credit of up to Rs 25 crore as on February 29, which were less than or equal to 60 days past due as on that date, and with an annual turnover of up to Rs 100 crore, would be eligible for GECL funding under the scheme. DP ANU ANU

SBI disburses Rs 8,700 cr to MSMEs under emergency credit guarantee scheme

From home sales and jewellery to power consumption, these are all the sectors that are back to pre-pandemic levels

Kolkata, Jun 18 () State Bank of India (SBI) chairman Rajnish Kumar on Thursday said that there is enough liquidity available in the system and also interest rates have moderated to a large extent. Speaking at a webinar organised by Bharat Chamber of Commerce, Kumar said that both the RBI and the government have taken measures to bring back the economy, derailed by the pandemic, back on track. "The government and the RBI have taken measures to bring back the economy to the path of revival", he said. Kumar said the RBI has been giving calibrated responses quickly and ensured that there is enough liquidity in the system. According to him, interest rates have also moderated to a large extent. He said that government has taken steps to make direct bank transfers, a lot of emphasis on helping the MSMEs and announced reforms in the areas of agriculture, defence and mining for creating a favourable investment climate. "I believe the situation is returning to normal and many businesses are back to normal operating at 70 to 80 per cent capacity. Some of them have also started exports", he said. According to him, the rural economy will play a critical role in the revival process. The aviation, tourism, hospitality, services and construction sectors are the most affected, while agriculture is the least, Kumar said. Regarding the Supreme Court's observation on moratorium on loans that banks are charging 'interest on interest', Kumar said SBI has filed an application for intervention along with IBA. "The matter is sub-judice and better to wait till August", he said. Kumar also said that SBI is not charging higher interest rates for ratings downgrade. He said, "we cannot imagine post-COVID situation at the moment and also don't know when it will come." According to him, SBI's liquidity ratio of 143 per cent is not an indicator of the fact that the bank is not lending. Regarding SBI, he said that the bank has sanctioned loan applications of two lakh MSMEs under the guarantee emergency credit line. The MSMEs are managing this crisis very well, he said, adding that reassessment of working capital is going on. dc RG RG RG

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