State Bank of India has an eligible credit facility of Rs 70,000-80,000 crore under the emergency credit guarantee scheme 5.0 for the micro, small and medium enterprises, Chairman CS Setty said. “Eligible customer base will (have) around 70,000-80,000 crore worth credit facility is available to our customers under the ECLGS scheme,” Setty said. “But how many of them will really utilise, we don’t know,” he added.
According to the investor presentation, the public sector bank has an SME book of Rs 6 lakh crore as on December 31, which forms 15.05% of the domestic advances.
Digital Rollout
In terms of asset quality, the SME book saw non-performing assets worth Rs 18,077 crore, forming 3.01% of the total NPA.
On the ECLGS 5.0, the final guidelines are expected to roll out within this week. “We are hopeful that maybe next 8 to 10 days, most of the scheme implementation issues will be addressed, in terms of getting the board approvals, in terms of rolling out digital process,” Setty said.
Department of Financial Services (DFS) Secretary M. Nagaraju in a press briefing said, “NCTGC has been asked to roll out the guidelines quicky and IBA has been asked to hold meeting with banks for smooth implementation.”
Sectoral Exclusions
He added that the Jan Samarth Portal would be used and the whole process will be digital.
Manoj Ayyappan, Joint Secretary DFS mentioned that sectors such as power, telecom, education institutions and a few others, which were not impacted will not be included under this scheme. For MSMEs however, there will be no exclusions. They also clarified that the special mention accounts (SMA)- 0 and SMA-1 accounts would be eligible under the scheme. He added that specific guidelines have been laid out for airlines regarding their end use of funds.
As per the notification released on Tuesday, the scheme allows additional credit of up to 20% of peak working capital utilised during Q4 FY26, capped at Rs 100 crore for MSMEs. For airlines, additional credit of up to 100% of peak working capital can be extended, capped at Rs 1,500 crore per borrower. The government has targeted a total additional credit flow of Rs 2.55 lakh crore, including Rs 5,000 crore for airlines.