The banking sector’s NPA was at 5.9% at the end of March.
The NPA rate at 4.8% for borrowers who availed ECLGS facility is also lower than that of the borrowers who were eligible but did not avail the facility (6.1%), according to a report published by TransUnion CIBIL.
The study showed that repayment commenced in 38% of the accounts within three months from availing the facility, and went up to 82% in a year.
The scheme has been successful in helping Indian businesses navigate through the economic crisis caused by Covid-19, and helped revival of MSMEs during and after the pandemic.
The TransUnion CIBIL study is based on ECLGS data provided by National Credit Guarantee Trustee Company. The ECLGS scheme was launched in May 2020 and has been expanded and extended until March 31, 2023 with an outlay of Rs 5 lakh crore. This includes the recent addition of a further Rs 50,000 crore, which will be made available to enterprises in hospitality and related sectors.
