Banks to breathe easy as govt’s Rs 3.7 trn package brings relief for MSMEs

Banks to breathe easy as govt’s Rs 3.7 trn package brings relief for MSMEs

The finance minister (FM) has not disappointed businesses this time. That is l

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The finance minister (FM) has not disappointed businesses this time. That is largely the verdict from market experts and analysts who have given a thumbs up to the Rs 6-trillion relief package announced on Wednesday.


With nearly Rs 3.7 trillion targeted at micro, small and medium enterprises (MSMEs), this addresses the growing discomfort felt while lending to



Not only has credit growth in this segment been on a weak footing, asset quality of these loans, too, has prompted to take a cautious stance on the sector.


While Wednesday’s 4 per cent gains in Nifty Bank index was in anticipation of meaningful relief measures to the MSME sector (announcement came after market hours), Pankaj Pandey, head of research, ICICI Securities, says 100 per cent credit guarantee for standard MSME loans is a welcome move. The anticipation was only 25 per cent credit guarantee, he explains.


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Though public sector bank (PSB)…



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