Sitharaman meet with bank chiefs
Finance minister Nirmala Sitharaman would meet the heads of State Bank of India and other public sector banks on Monday to assess their performance, review bad loans of Rs 100 crore or more and steps taken for recovery.
This is the first review meeting after the presentation of Budget 2022-23.
Finance ministry officials said the thrust of the meeting will include credit growth, asset quality and recovery, state of bad assets besides capital raising and investor relations.
This review meeting comes at a time banks’ credit growth has been picking up and is quite robust. Bank credit grew 11.3 per cent on a yearly basis in April, aided by the low base effect.
Credit growth has also been bolstered by some shift to bank borrowings by corporates due to subdued sentiments in capital markets that has seen sharp sell-off in recent months and higher working capital requirements for companies due to elevated inflation.