- Banks are relaxing repayment terms for these loans to help customers tide over the current period of uncertainty
- SBI, Union Bank of India and Indian Bank have sanctioned emergency credit lines, while BoB and Bank of India are expected to approve something similar in the coming days
MUMBAI : State-run banks have stepped up with emergency funds to help companies continue operations and even pay employee salaries, as corporate borrowers frantically seek help to tide over the crisis caused by the Covid-19 pandemic, according to two people aware of the development.
Banks are also relaxing repayment terms for these loans to help customers tide over the current period of uncertainty.
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At least three state-run banks, State Bank of India (SBI), Union Bank of India and Indian Bank sanctioned emergency credit lines, while Bank of Baroda (BoB) and Bank of India are expected to approve something similar in the coming days. SBI’s credit line is up to ₹200 crore, Indian Bank’s credit line is up to ₹100 crore, while that of Union Bank is up to ₹50 crore. BoB aims to sanction an ad hoc limit of ₹200 crore or up to 10% of the borrowers’ fund-based working capital limit, while Bank of India plans to allow a top-up of up to 20% of the working capital limit or a maximum of ₹200 crore.
Source: livemint
