Mukherjee to review performance of PSBs on Tuesday

New Delhi: Against the backdrop of tough economic conditions, Finance Minister Pranab Mukherjee will review the annual performance of government-run banks and financial institutions on Tuesday.

Mukherjee would meet with chiefs of public sector banks and financial institutions to review their performances.[caption id=“attachment_339838” align=“alignleft” width=“380” caption=“Banking review. Image courtesy PIB”]  [/caption]

The review would focus on credit to agriculture and MSME (Micro, Small and Medium Enterprises), housing and education loans, gross and net Non Performing Assets (NPAs), an official release said today.

In addition, the meeting would review the progress of various initiatives of the Department of Financial Services and the finance ministry in the areas of improving productivity and efficiency in public sector banks.

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The release said the meeting is being held at a time when the Indian economy is facing various challenges.

“Our financial sector is having immense potential in economic development of the country. However, there is a need to identify the opportunities and recognise the challenges to work towards a sustainable and inclusive growth,” it said.

Ministers of State (Finance), RBI deputy governor and senior finance ministry officials are also expected to attend the meeting.

“The finance minister is likely to appreciate the CEOs for enhancing the net profit of PSBs and for affecting unprecedented recovery against the outstanding dues.

“He is also likely to impress upon them to continue their endeavour of tackling the NPAs,” the release noted.

The role of Regional Rural Banks (RRBs) as well as their recapitalisation and issues related to New Pension Scheme - NPS lite, known as Swavalamban are also likely to discussed at Tuesday’s meeting.

Further, the progress made with regard to financial inclusion initiative Swabhimaan as well as steps to ensure that benefits of government schemes directly reach the beneficiaries in a time bound plan and through Electronic Fund Transfer (EBT) would be discussed.

The progress made in respect of banking facilities in North Eastern and hilly states with population from 1,000 to 2,000 would also be reviewed, it added.

PTI