Bank of Baroda sets up Emergency Credit Line for Affected MSME, Corporate Borrowers

26 मार्च 2020

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Initiative to meet temporary liquidity mismatch arising out of impact of Covid-19 pandemic Mumbai, 25 March, 2020: Bank of Baroda, India’s second largest public sector bank, has rolled out Baroda Covid Emergency Credit Line-BCECL to provide Emergency Credit Line in the nature of Short- Term Loan / Demand Loan 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 Fund Based Working Capital Limits (FBWC) subject to maximum of Rs. 200 crore. This is in addition to existing adhoc/excess/SLC/Gold Card Limit. The interest rate for corporate borrowers would be 1-year MCLR of 8.15% without the standard premium and for MSMEs, the rate of interest would be at Baroda Repo Linked Lending Rate of 8.00%. All standard accounts that have not been classified as SMA 01 or SMA 02 as on March 26, 2020 and till the date of sanction are eligible for loan under this scheme. With a Moratorium of 6 months (Maximum), 15% of the loan amount is repayable monthly /quarterly instalment in first -6- months and balance 85% amount is repayable in next -12- months. Interest to be served as and when applied. Eighty per cent of proposed limits should be backed by the value of the stocks and receivables and 20% can be given on clean basis. In case of need, additional cover period of -3- months to be allowed in respect of receivables over and above presently allowed period till the closure of the facility. Shri Vikramaditya Singh Khichi, Executive Director said, “At Bank of Baroda, it has always been our prime objective to stand by our customers - to help them - and in turn the economy as a whole. We hope the additional liquidity facility “Baroda Covid-19 Emergency Credit Line (CECL)” will offer the requisite support to our customers to smoothly tide over the financial distress.” Bank of Baroda is actively working towards gauging the mismatch between the market liquidity of assets and helping the business community with funding liquidity of liabilities. About Bank of Baroda: Bank of Baroda (“The Bank”) established on July 20, 1908 is a State-owned banking and financial services organization, headquartered in Vadodara (earlier known as Baroda) in Gujarat, India. Bank of Baroda is India’s second largest bank with a strong domestic presence supported by self- service channels. The Bank’s distribution network includes 9,500+ branches, 13,400+ ATMs and 1,200+ self-service e-lobbies. The Bank has a significant international presence with a network of 100 branches/offices of subsidiaries, spanning 21 countries. The Bank has wholly owned subsidiaries including BOB Financial Solutions Limited (erstwhile BOB Cards Ltd.), BOB Capital Markets and Baroda Asset Management India Ltd. Bank of Baroda also has joint ventures for life insurance viz. India First Life Insurance and India Infradebt Ltd., engaged in infrastructure financing. The Bank owns 98.57% in The Nainital Bank. The Bank has also sponsored three Regional Rural Banks namely Baroda Uttar Pradesh Gramin Bank, Baroda Rajasthan Gramin Bank and Baroda Gujarat Gramin Bank. Visit us at Facebook Twitter Instagram YouTube LinkedIn

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