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Regular-article-logo Wednesday, 11 December 2024

SBI offers credit aid

Covid-19 Emergency Credit Line (CECL) — will provide funds up to Rs 200 crore and will be available till June 30

PTI Mumbai Published 21.03.20, 07:28 PM
3 people, including the manager of the customer care service of State Bank of India, Chandra Mohan Prasad, received gunshot injuries

3 people, including the manager of the customer care service of State Bank of India, Chandra Mohan Prasad, received gunshot injuries (Shutterstock)

The State Bank of India has opened an emergency credit line to meet any liquidity mismatch for its borrowers amid businesses getting affected because of the novel coronavirus pandemic.

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

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

“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 SMA-2 as on March 16, 2020, are eligible to get this credit line.

Special Mention Accounts (SMA) was introduced to identify those accounts that has the potential to become a non-performing or stressed asset.

Borrowers can maximum get 10 per cent of the existing fund based working capital limits, subject to a cap of Rs 200 crore, the bank said.

According to a recent survey by Ficci, over 50 per cent of companies in India will feel the impact of coronavirus.

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

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