HomeBusinessFinance Minister Could Urge Bankers To Sanction Key Sector Loans Throughout Meet

Finance Minister Could Urge Bankers To Sanction Key Sector Loans Throughout Meet

Nirmala Sitharaman is to satisfy public sector banks’ chiefs on June 20

New Delhi:

Nirmala Sitharaman is scheduled to satisfy heads of public sector banks (PSBs) on Monday (June 20) to evaluation efficiency of the lenders and progress made by them on varied schemes launched by the federal government for revival of the economic system.

That is the primary evaluation assembly after the presentation of Price range 2022-23.

Banks could be urged to sanction loans for productive sectors to speed up revival of the economic system going through headwinds together with from Russia-Ukraine battle, sources mentioned.

Final week through the Iconic Week celebration of the finance ministry, banks performed outreach programme throughout the nation the place eligible debtors have been sanctioned loans on the spot.

The would take a inventory of credit score progress, asset high quality and enterprise progress plan of banks, sources mentioned.

They mentioned there could be a complete evaluation of varied segments and progress in authorities schemes together with Kisan Credit score Card, Emergency Credit score Line Assure Scheme (ECLGS).

Within the Price range, ECLGS was prolonged by a yr until March 2023. Additional, the assure cowl for the scheme was expanded by Rs 50,000 crore to Rs 5 lakh crore.

The protection, scope and extent of advantages beneath ECLGS 3.0 pertaining to hospitality, journey, tourism and civil sectors have been expanded.

Additionally, the credit score restrict for eligible debtors was elevated to 50 per cent of their fund-based credit score excellent from 40 per cent earlier.

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The improved restrict is topic to a most of Rs 200 crore per borrower. Moreover, sources mentioned, evaluation of capital requirement of banks and monetary inclusion drive could be reviewed through the assembly.

It’s to be famous that the assembly is being held in opposition to the backdrop when all PSBs posted revenue within the second monetary yr in a row. They’ve greater than doubled their internet revenue to Rs 66,539 crore throughout 2021-22.

The collective revenue of 12 state-owned banks collectively was Rs 31,820 crore in 2020-21. Nonetheless, there have been collective losses for 5 straight years throughout 2015-16 to 2019-20.

The very quantity of internet loss was registered in 2017-18 at Rs 85,370 crore, adopted by Rs 66,636 crore in 2018-19; Rs 25,941 crore in 2019-20; Rs 17,993 crore in 2015-16 and Rs 11,389 crore in 2016-17.

To enhance monetary well being of PSBs, the Authorities applied a complete 4Rs technique – recognition of non performing property (NPAs) transparently, decision and restoration of worth from careworn accounts, recapitalising of PSBs, and reforms in PSBs and the broader monetary ecosystem — for a accountable and clear system.

Complete steps have been taken beneath the 4Rs technique to scale back NPAs of PSBs. As a part of the technique, the Authorities has infused Rs 3,10,997 crore to recapitalise banks over the past 5 monetary years – from 2016-17 to 2020-21, out of which Rs 34,997 crore have been sourced by budgetary allocation and Rs 2,76,000 crore by issuance of recapitalisation bonds to those banks.



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