Coronavirus: PNB opens emergency credit line for MSMEs, eases working capital norms
Punjab National Bank on Wednesday said it has opened an emergency credit line for the MSME sector to help it tide over liquidity issues amid the coronavirus crisis.
It has also liberalised the working capital assessment (LWCA) model for MSME borrowers having limits of Rs 5 crore and above, the state-owned lender said at a webinar hosted with industry body PHD Chamber to address the issues of micro, small and medium enterprises.
There is a facility of standby line of credit for MSMEs, as well as PNB COVID-19 Emergency Credit Facility (PNB-CECF), the bank said.
There are also other policy initiatives like restructuring of MSME advances, interest subvention scheme, TReDS, Mudra loan products, Credit Guarantee Trust for MSMEs and PSB loans in 59 minutes, it added.
The bank's MD and CEO SS Mallikarjuna Rao said in the backdrop of the nationwide lockdown, the bank has organised the webinar to address the liquidity requirement of its customers through the online platform.
This forms a part of its 'Mega MSME Outreach' aimed at connecting with its MSME customers across the country and to address their challenges.
He said the bank has witnessed a humongous response from borrowers across the country through this outreach programme.
It added it has been contacting more than one lakh MSME borrowers through its 'Each One Reach Ten Each Day' initiative to update them about its schemes on a daily basis.
Through the online platform of Trade Receivables Discounting System (TReDS), MSMEs can avail timely credits against their bills, which helps in managing their cashflows efficiently, PNB said.
In addition, the bank has communicated with large number of MSME associations across the country seeking co-operation to educate the companies under their ambit about the special schemes launched by the bank.