The massive customer-outreach programme launched by the public sector banks in October seems to have worked. Total loan disbursals by these banks stood at Rs 2.5 lakh crore in the month of festivals, says a finance ministry release. Of this amount, new term loans accounted for Rs 1.06 lakh crore, working capital loans for Rs 46,800 crore and credit to non-banking financial companies (NBFCs) for Rs 19,627.26 crore.
The finance ministry had asked the state-run banks to launch customer outreach programmes in 226 districts in phase I and 148 districts in second II to offer loans to small businesses and retail customers in the festive season. The first phase of the outreach programme was organised from October 1to October 9 while the second phase was organised between October 21 and October 25.
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PSBs reached out to customers to sanction loans, open accounts and popularise BHIM app, the finance ministry release said.
The outreach programme was part of the government’s efforts to boost economic growth in the wake of a slowdown induced by lack of demand. The GDP growth for the first quarter ending June had crashed to 5%, the slowest rate since Prime Minister Modi came to power in 2014. The credit disbursals were not taking off despite the best efforts by the Reserve Bank, which effected five consecutive cuts in policy rates as banks were slow in passing on the cuts to its customers.