FM Nirmala Sitharaman to meet CEOs of public sector banks on Wednesday
Finance Minister Nirmala Sitharaman will meet with heads of public sector banks (PSBs) on Wednesday to review the financial performance of lenders and their progress in supporting the economy affected by the pandemic, sources said.
The meeting with the CEOs and CEOs of PSBs takes on importance given the importance of the banking sector in generating demand and stimulating consumption.
Recently, the Minister of Finance had declared that the government was ready to do everything to revive and support the economic growth affected by the COVID-19 pandemic.
The meeting is expected to take stock of the banking sector and the progress of the restructuring program 2.0 announced by the Reserve Bank of India (RBI), the sources said, adding that banks could be incentivized to boost lending growth in the sectors. productive.
The revamped Rs 4.5 lakh crore Emergency Line of Credit Guarantee Scheme (ECLGS) will also be discussed at the meeting likely to be held in Mumbai, the sources said.
In addition, the finance minister is expected to take stock of the bad debt or non-performing assets (NPA) situation, and discuss various recovery measures by the banks, they said.
As a result of the government’s strategy of recognition, resolution, recapitalization and reforms, NPAs have shown a downward trend from Rs 7,39,541 crore on March 31, 2019 to Rs 6,78,317 crore on March 31, 2020 and thereafter at Rs 6, 16,616 crore as of March 31, 2021 (provisional data).
At the same time, comprehensive measures have been taken to control and carry out the collection of MPAs, which has enabled the PSBs to collect Rs 5,01,479 crore in the last six fiscal years, the government of Parliament recently informed.
In addition, Sitharaman is expected to report Ease 3.0 index results for 2020-2021, they said, adding that PSBs would be rated on various indices for the year.
Launched in January 2018, Enhanced Access and Service Excellence (Ease) is the reform program common to all public sector banks aimed at institutionalizing a clean and smart bank.
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