Export credit boost: Banks clear Rs 3,362 crore under CGSE in first month; 774 exporters covered
The scheme, approved by the Union Cabinet on November 12 and made operational from December 1, 2025, provides 100 per cent credit guarantee cover by the National Credit Guarantee Trustee Company Ltd (NCGTC) to member lending institutions (MLIs) for extending additional credit facilities of up to Rs 20,000 crore to eligible exporters, including MSMEs.“Applications worth Rs 8,764.81 crore (1,840 applications) received, out of which Rs 3,361.83 crore (774 applications) sanctioned by the lenders” till January 2, 2026, the Department of Financial Services (DFS) under the finance ministry said in a statement.Implemented by the DFS, the CGSE aims to enable banks and financial institutions to extend additional financial assistance to Indian exporters during a period of external trade uncertainties, helping them diversify markets and enhance global competitiveness.
The scheme will remain valid till March 31, 2026, or until guarantees worth Rs 20,000 crore are issued, whichever is earlier.The DFS also highlighted progress under the Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME), which offers credit guarantees to incentivise MLIs to provide additional credit facilities of up to Rs 100 crore to MSME borrowers for the buy of plant, machinery and equipment.
As of December 2025, banks have sanctioned Rs 16,836 crore against 8.96 lakh applications under the scheme.Sharing broader banking sector performance, the DFS said scheduled commercial banks (SCBs) recorded their highest-ever aggregate net profit of Rs 4.01 lakh crore.
Public sector banks (PSBs) posted a record aggregate net profit of Rs 1.78 lakh crore in 2024-25, while their net profit stood at Rs 0.94 lakh crore in the first half of 2025-26.Global deposits and advances of PSBs rose to Rs 146.27 lakh crore and Rs 114.85 lakh crore, respectively, in September 2025, compared with Rs 71.95 lakh crore and Rs 56.16 lakh crore in March 2015.The gross non-performing assets (GNPA) ratio of PSBs declined to 2.30 per cent (Rs 2.65 lakh crore) in September 2025, down from 4.97 per cent (Rs 2.79 lakh crore) in March 2015 and a peak of 14.58 per cent (Rs 8.96 lakh crore) in March 2018.
The capital adequacy ratio of PSBs improved by 451 basis points to 15.96 per cent in September 2025 from 11.45 per cent in March 2015.
