Coronavirus | SBI opens emergency credit line for borrowers – The Hindu

Nearly 80% businesses have witnessed decline in cash flows due to the coronavirus pandemic, says a FICCI survey

Amid businesses getting affected due to the novel coronavirus pandemic, the country’s largest lender State Bank of India has opened an emergency credit line to meet any liquidity mismatch for its borrowers.

The additional liquidity facility — Covid-19 Emergency Credit Line (CECL), will provide funds up to ₹200 crore and will be available till June 30, 2020, SBI said in a circular issued on Friday.

The loan will be offered at an interest rate of 7.25% with a tenure of 12 months.

Editorial | The missing notes: On politics and the fight against COVID-19

With a view to provide some degree of relief to the borrowers whose operations are impacted by Covid-19, it is decided to make available additional liquidity credit facilities to the eligible borrowers by way of ad-hoc facilities — CECL to tide over the current crisis situation, the bank said in a circular to all branches.

The bank said the credit line is open for all standard accounts which have not been classified as SMA 1 or 2 as on March 16, 2020.

Special Mention Accounts (SMA) was introduced to identify those accounts that has the potential to become an NPA/stressed asset.

SMA-1 accounts are those where the overdue period is between 31 to 60 days. while, in SMA -2 accounts overdue is between 61 to 90 days.

Opinion | Blunting the economic impact of a pandemic Borrowers can maximum avail 10% of the existing fund based working capital limits, subject to a cap of ₹200 crore, the bank said.

According to a recent survey conducted by industry body, Federation of Indian Chambers of Commerce and Industry (FICCI), over 50% of companies in the country see impact of coronavirus on their operations.

Nearly 80% businesses have witnessed decline in cash flows due to the global pandemic, it showed.

via Coronavirus | SBI opens emergency credit line for borrowers – The Hindu

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s