In a meeting with Union Finance Minister Nirmala Sitharaman, chiefs of public sector lenders have argued for a package including debt restructuring for sectors like aviation, hospitality, and commercial real estate, which have been hit hard by the lockdown imposed to contain Covid-19 pandemic.
They have begun loan disbursal to units, especially MSMEs, to ensure timely support for starting operations.
Public sector bank executives said the three sectors have been hit badly and are crucial for ensuring jobs. The lenders said credit support for units in these sectors was “crucial in restarting economic activity”. All public sectors banks have sanctioned emergency working capital credit lines (10 per cent of existing exposure) to companies across these sectors, they said.
