Customer Outreach Initiative Conducted by Public Sector Banks (PSBS) During October,2019

Finance Minister’s directive to PSBs to reach out to customers and signal their willingness to lend, crystallised in Customer Outreach Initiative by PSBs during October, 2019

Outreach Camps conducted across 374 districts across the country during October, 2019

Record ₹ 2.53 lakh crore of loans disbursed in a single month

Total credit of ₹ 19,627.26 crore given by PSBs to Non Banking Financial Companies (NBFCs) during October,2019

As per the Union Finance Minister’s directive to Public Sector Banks (PSBs) in September, 2019, Customer Outreach Programmes were conducted by PSBs in participation with other banks and NBFCs in 226 districts (from 01.10.2019 to 09.10.2019) in Phase – I and 148 districts (from 21.10.2019 to 25.10.2019) in Phase – II. PSBs actively reached out to their customers in these camps and made concerted efforts towards activities such as sanctioning of loans as per prudential norms, opening of accounts along with Aadhar and mobile seeding of accounts, and popularizing BHIM app. The drive also simultaneously galvanised similar outreach efforts in individual branches of PSBs i.e. outside the camps.

Highlights of the achievements during the initiative are as under:

• Total Disbursements during the month of October 2019 was ₹ 2,52,589 crore including camps and all branches.
• An amount of ₹ 1,05,599 crore was disbursed towards New Term Loan.
• An amount of ₹ 46,800 crore was disbursed towards New Working Capital loans.
• Total New Term Loan + New Working Capital (₹ 1,05,599 crore + ₹ 46,800 crore) was 60% of total disbursement.
• Credit to NBFCs during the month of October 2019 was ₹ 19,627.26 crore.

The details are as under:

1. PSBs Disbursement Data in Customer Outreach Initiative

During 1st Customer Outreach Initiative From 01.10.2019 to 9.10.2019	During 2nd Customer Outreach Initiative From 9.10.2019 to 31.10.2019	From 01.10.2019 to 31.10.2019
Amount (Rs. In Crore)
81,695	1,70,893	2,52,589

  2. PSBs Disbursement Data in Customer Outreach Initiative – Product-wise

Sl. No	Product	During 1st Customer Outreach Initiative From 01.10.2019 to 9.10.2019	During 2nd Customer Outreach Initiative From 9.10.2019 to 31.10.2019	From 01.10.2019 to 31.10.2019
		Amount (Rs. In Crore)
1	Home Loan	2,688	9,478	12,166
2	Vehicle Loan	1,638	5,447	7,085
3	Education Loan	152	273	425
4	Other Personal Loans	3,503	11,747	15,250
5	MSME Loans	13,956	23,254	37,210
6	Agri Loans	11,451	29,053	40,504
7	Corporates	46,224	76,561	1,22,785
8	NBFCs	1,175	12,488	13,663
9	NBFCs On-lending	908	2,592	3,500
Grand Total		81,695	1,70,893	2,52,589

 3. Credit to NBFCs in the month of October 2019

Category	Disbursed (in Rs. Crores)
On-Lending / Co-origination	15,297.18
Pool Buyout	1,453.13
PCGS	2,876.95
Total	19,627.26

Source: Banks

Public Sector Bank lending outreach mobilised camps and branches to accelerate credit and support NBFC liquidity through multiple lending channels. Public Sector Banks conducted a two-phase Customer Outreach Initiative involving camps and branch mobilisation to sanction loans under prudential norms, seed accounts with Aadhaar and mobile numbers, and promote digital payments; the drive generated a large aggregate monthly disbursement predominantly comprising new term and new working capital loans, with detailed product-wise allocations and substantial credit provided to NBFCs via on-lending/co-origination, pool buyouts, and a credit guarantee supported mechanism.