Heavy govt deposits bring down banks’ credit-debit ratio in GB NagarUpdated: Oct 18, 2020, 23:25 IST
The push of government funds into banks for upcoming projects in Gautam Budh Nagar, has brought down the credit-debit ratio (CDR) of the banks to below the optimum 60% in the district, officials said.
District lead bank manager Ved Ratna said that as per the reports submitted by a few banks, the CDR of these banks had gone down despite regular financing.
“The government has deposited over ₹4,000 crore as many upcoming projects like Jewar airport and Smart City will be kicked off soon. On the other hand, we don’t have as many entrepreneurs who want finances from banks. As a result, the CDR is expected to go down to 57% by the end of this quarter,” he said.
He said banks in the district had disbursed over ₹511 crore to 6,535 individuals under the government-backed emergency credit line guarantee scheme (ECLGS). “This collateral-free, government-backed scheme was launched in May to enable small businesses to resume operations. Later, based on industry demand, the ambit of the scheme was expanded to include micro, small and medium enterprises (MSMEs) with turnover of up to ₹250 crore from ₹100 crore, in line with the new MSME definition and individuals for business purposes. Of these 6,535 persons, who have got loans from banks, over 5,000 are MSME entrepreneurs and the banks have given them loans of ₹449 crore,” he said.
Ratna further said that loans have also been extended under ₹20-lakh crore Aatmanirbhar Bharat Abhiyan stimulus package, to street vendors, for tiding them out from the financial crisis in the post-Covid situation. “The GB Nagar district administration had already identified as many as 3,153 small vendors eligible for loans. So far, we have disbursed ₹1.8 crore among 1,800 of them. Under the scheme, a loan amount of ₹10,000 is being extended to street vendors, which can be repaid in 12 instalments with an interest rate of 7%,” he said.