Banks told to step up credit flow
The finance ministry on Tuesday asked the public sector banks to step up lending to productive sectors as part of a review of their first-quarter results.
The meeting chaired by financial services secretary Sanjay Malhotra deliberated on the need to cut non-performing assets and drive financial inclusion, sources said.
The meeting took stock of the lenders’ asset quality, with a focus on large NPAs, their implementation of government schemes and capital-raising plans.
Managing directors and executive directors of all public sector banks who participated in the meeting were asked to focus on credit growth during the festive season, beginning in September.
There was a comprehensive review of the progress of various government schemes such as Kisan Credit Card, Pradhan Mantri Mudra Yojana, StandUp India, Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana.
The secretary also reviewed the performance of banks with respect to lending towards animal husbandry, dairying and fisheries sectors.
Ahead of Diwali last year, the Nirmala Sitharaman-led finance ministry asked stateowned lenders to conduct district-wise credit outreach programmes to bolster loan flow.