New Delhi (28.07.2026): The financial health of Public Sector Banks (PSBs) have shown significant improvement with healthy balance sheets, historically high profits and multi-decadal low level of gross non-performing assets (GNPAs). Credit Growth Accelerates Across Key Sectors in FY 2025-26; MSME and Retail Loans Register Robust Growth of 19.6% and 19.8% respectively
The Government has introduced Emergency Credit Line Guarantee Scheme (ECLGS 5.0) in May, 2026, to tide over any short-term liquidity mismatches faced by businesses due to West Asia Crisis. The scheme provides guarantee coverage to Member Lending Institutions (MLIs) through National Credit Guarantee Trustee Company Limited (NCGTC) for the amount in default under the additional credit facility extended to the eligible borrowers.
The scheme provides 100% guarantee coverage for MSMEs and 90% guarantee coverage for non-MSMEs and the scheduled passenger airline sector, up to a credit flow of Rs 2,55,000 crore, which includes Rs 5,000 crore specifically earmarked for the scheduled passenger airline sector.
Under ECLGS 5.0, borrowers in the airline sector are eligible for assistance of up to 100% of their total peak credit outstanding (both fund-based and non-fund-based) during the fourth quarter of FY 2025–26, i.e., from 1.1.2026 to 31.3.2026 (both dates inclusive). The maximum loan amount available under ECLGS 5.0 for the airline sector is Rs 1,500 crore per borrower (of this, any amount beyond Rs 1,000 crore and Up to Rs 1,500 crore shall be permitted only with a proportionate equity contribution from the promoters/owners).
