Public Sector Banks Meeting: Finance Minister Nirmala Sitharaman will hold a meeting with the heads of public sector banks on 23 April. In this meeting, the Finance Minister will discuss about the performance of government schemes and the revival of the economy. Along with this, the performance of the lending institutions will also be reviewed in this meeting.
First meeting after budget
This will be the first meeting of the Finance Minister with PSB chiefs after presenting the budget for the financial year 2022-23. According to sources, in this meeting, the government can ask banks to increase the allocation of credit to productive sectors to accelerate the pace of the economy.
ECLGS will also be reviewed
Sources said that in this meeting the progress of various government schemes and performance of various economic sectors will be thoroughly reviewed. The Loan Facility Guarantee Scheme (ECLGS) will also be under review. In this year’s budget, ECLGS has been extended till March 2023.
Guarantee cover increased to 50,000
Along with this, the government has also increased the guarantee cover given under the scheme by Rs 50,000 crore to Rs 5 lakh crore. The hospitality, travel, tourism and civil aviation sectors have also been brought under the ambit of the scheme.
The agenda of the banking sector will be decided
According to sources, this meeting to be held in New Delhi at the beginning of the financial year can decide the agenda of the banking sector for the whole year. In the last financial year, none of the public sector banks had incurred losses during April-December 2021 and in these nine months PSBs earned a consolidated net profit of Rs 48,874 crore.
earned net profit
Public sector banks had made a combined net profit of Rs 31,820 crore in the financial year 2020-21, but in the preceding five consecutive years, these banks had collectively suffered losses. The maximum loss of Rs 85,370 crore was in the year 2017-18.
Government put a total of 3.10 lakh crores
The government had formulated a holistic strategy to improve the financial position of these banks, with emphasis on showing transparency on NPAs, recovery of value from stressed accounts, infusion of fresh capital in PSBs and reforms in PSBs. In PSBs, the government has infused a total of Rs 3.10 lakh crore capital during 2016-21.