Financial Express reports the MSC Bank has said the sectoral exposure limit of the bank to the sugar sector has reached exhaustion and the bank can not issue pre-season loans to sugar mills.
The 55 mills can look for elsewhere for loans, said MSC bank and Nabard officials.
Earlier, the Maharashtra State Cooperative Sugar Factories Federation (MSCFF) had sought clarity on guidelines from the RBI and Nabard for the utilization of the Center’s scheme for a soft loan of Rs 10,540 crore.
