Jaitley to hold meeting with PSBs, performance review on the cards

Arun Jaitley will review the overall performance of the public sector banks

By: ANI | New Delhi | Updated: June 6, 2016 12:31 pm
Finance Minister Arun Jaitley, Arun Jaitley, Public Sector banks, Stand up India, MUDRA, Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Surkasha Bima Yojana, Atal Pension Yojana, bank loans, BJP, India news, BJP news, Arun Jaitley news. Issues related to Housing loan, Medium and Small Enterprises credit, financial inclusion and literacy are also likely to be discussed in the review meeting.

Finance Minister Arun Jaitley will hold a meeting with the chief executive officers of public sector banks and financial institutions to discuss the quarterly performance review.

The minister is likely to review the overall performance of public sector banks during the last financial year as well as flow of credit to agriculture, insurance and micro small enterprises sectors, an official statement said.

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He will also review the progress and performance of the new initiatives of the NDA government including Stand up India, MUDRA, Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Surkasha Bima Yojana and Atal Pension Yojana.

Along with the heads of state-run banks and financial institutions, the meeting will also be attended by Minister of State for Finance Jayant Sinha, Department of Financial Services Secretary Anjuly Chib Duggal, and senior officials, the statement added.

Apart from these discussions, issues related to Housing loan, Medium and Small Enterprises credit, financial inclusion and literacy are also likely to be discussed in the review meeting.

Gross non-performing assets (NPAs), or stressed loans, of PSBs rose from Rs 267,065 lakh crore in March 2015 to Rs 361,731 lakh crore in December.

As a proportion, the gross NPAs increased from 5.43 per cent of advances as on March 2015, to 7.3 per cent as on December-end.

Ten state-run banks suffered losses of over Rs.15,000 crore in the fourth quarter ended March because of provisioning made to cover for bad debt. Punjab National Bank, for instance, made an operational profit last year of Rs.12,000 crore, but has now declared a loss because of provisioning for NPAs.

In this connection, Jaitley has said NPAs were mostly due to business-related losses in certain sectors rather than frauds, and one must “distinguish between chalk and cheese.”

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