Working Capital Relief Measures

In order to overcome the liquidity woe due to pandemic, various financial institutions have taken steps to ease the working capital norms to ensure sufficient liquidity into the system. To name the few major Banks / Financial institutions, we have compiled their policy revision as follows:

State Bank of India (SBI): Businesses may request to Bank to re-assess their Working Capital requirements on account of disruption of their cash flows or elongation of Working Capital Cycle. Also we may approach the bank for reduction in margin on NFB facilities (LCs/ BGs etc) or relief in Security. This is in addition to the 3 months moratorium on repayment of term loans.
However decision on additional working capital requirements or NFB facility will be taken on case- to-case basis after due diligence.
For more details on policy note pl. click here

Punjab National Bank (PNB): The Bank has stated that the “drawing power” will be calculated by reducing the margins and/or by reassessing the working capital cycle. It is pertinent to mention that after merger of United Bank of India & OBC into PNB, all the branches of merged banks are also assessing the working capital requirements in the light of new norms.
For more details on the policy note pl click here

Union BankCorp. BankAndhra Bank
Union Bank of India: 
The business units may request for reduction in margin on Fund Based / Non Fund Based working capital for arriving at DP. The decision will be taken as per the policy formulated by Bank & genuineness of the request.
Also those who have account in Andhra Bank or Corporation Bank are also eligible to take benefit on these policy revision due to merger of these banks with Union Bank of India.
For more details on the policy note pl click here

BOBVijaya Bank Dena Bank
Bank of Baroda: Bank of Baroda has introduced emergency credit line under the name of “Baroda Covid Emergency Credit Line-BCECL” to provide Emergency Credit Line to existing MSME and Corporate borrowers affected by impact of COVID 19. To this effect, the Bank has decided to make maximum 10% of the existing FBWC subject to maximum of Rs. 200 crore. This is in addition to existing adhoc/excess/SLC/Gold Card Limit.
All account holders of Dena Bank & Vijaya Bank are also entitled to avail the benefits of this scheme.
For more details on the policy note pl click here

Indian BankAllahabad Bank
Indian Bank: To overcome the difficulties faced by Micro & Small Enterprises (MSEs), Indian Bank has proposed to extend additional finance to meet the crisis. A new product “IND-MSE COVID EMERGENCY LOAN” has been launched to help MSEs in meeting temporary liquidity mismatches.
All the MSEs having bank facility with Allahabad Bank are also eligible to avail the benefits of the scheme.
For more details on the policy note pl click here


Small Industrial Development Bank of India (SIDBI): To provide finance MSMEs who are manufacturing any products or providing any services related to fighting Corona Virus.
Also a special window is available for financing the healthcare sector including hospitals, nursing home, clinics, etc. for their requirements related to fighting Corona Virus.
For more details on the policy note pl click here

There are many more financial institutions who have introduced the liberal norms to overcome the challenges poised by the pandemic. For detail pl. write at