In order to meet the temporary liquidity mismatch arising out of COVID-19 outbreak, Canara Bank has announced 'CANARA CREDIT SUPPORT' for all of their borrowers who have been affected by COVID-19. The Canara Credit Support is extended as a quick and hassle-free loan to overcome the temporary liquidity mismatches for payment of statutory dues, salary / wages / electricity bill, rent etc.
Canara Bank has since sanctioned nearly 6.00 lakh loans amounting to Rs.4300 crores under agriculture, SHGs and Retail categories. The bank has employed various strategies viz. SMS, Call Centres, emails, personal calls to reach out to the eligible borrowers to explain the facility in order to sanction the loan.
Canara Bank is the front-runner in disbursement and providing customer experience excellence in such unprecedented times. The Bank has also sanctioned more than Rs.60,000 crores of advances to the Corporates and MSMEs from Mar, 2020 till date.
Further, the Government of India has announced emergency credit line of 20% of the outstanding credit as on 29th Feb. 2020 to MSME borrowers having Rs.25.00 Crore outstanding with an annual turnover upto Rs.100.00 crores. The credit line is 100% guaranteed by the Government of India. The facility can be availed upto 31.10.2020 at the convenience of the borrower and as per the terms and conditions.
Shri L V Prabhakar, MD & CEO, Canara Bank said, "Canara Bank has proved its customer-centricity and customer responsiveness in the disbursement of the COVID-19 schemes. All our branches and offices have been continuously working to reach out to all our customers in this hour of need. We are sure that once the lockdown is completely lifted, our customers would be able to avail the sanctioned facilities to the full extent and improve their business.
Steps taken by the bank to aid existing borrowers and for giving boost to all the businesses are as follows:
- All Standard Accounts including SMA 0 and SMA 1 are eligible to avail this facility.
- 10% of existing fund based working capital limits or Rs 150 Crores whichever is lower is extended under this facility. This limit is over and above the eligible maximum permissible Bank Finance to the unit.
- The facility is given for a period of 24 months with 6 months moratorium.
- The loans are priced very competitively with no processing charges, no margin and no additional security.
Apart from the above facility, as per RBI regulatory package on COVID-19, moratorium has been extended on payment of all installments for term loans falling due between March 1st 2020 to August, 31st, 2020. In respect of the Working Capital facilities sanctioned in the form of Cash Credit/Overdraft, interest payment has been deferred up to August 31, 2020. In order to ameliorate the difficulties of the borrowers in repaying the accumulated interest, borrowers can convert the accumulated interest to a Funded Interest Term Loan payable by March 31, 2021.
Shares of CANARA BANK was last trading in BSE at Rs.77.2 as compared to the previous close of Rs. 77.65. The total number of shares traded during the day was 685757 in over 2704 trades.
The stock hit an intraday high of Rs. 80.1 and intraday low of 76.55. The net turnover during the day was Rs. 53340111.