FM to meet heads of PSBs on Sat; review progress of implementation of govt schemes

NewsDrum Desk
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New Delhi, Dec 26 (PTI) Finance minister Niramala Sitharaman is scheduled to meet managing directors of public sector banks (PSBs) on Saturday to review the financial performance of lenders.


PSU banks have earned a net profit of about Rs 68,500 crore during the first six months of the current financial year.

The meeting is going to take stock of the progress made by banks in achieving targets set for the various government schemes, including Pradhan Mantri Jan Dhan Yojana (PMJDY), Kisan Credit Card (KCC), Stand-Up India, Pradhan Mantri Mudra Yojana (PMMY), sources said.

This is the probably last full review meeting before the presentation of Budget 2024-25 and general elections later next year.


She will also discuss on measures to improve customer service and cyber security, sources said.

The finance minister would also review financial inclusion, credit growth, asset quality, and business growth plan of banks for the next financial year, the sources said, adding non-performing assets (NPAs) and the recovery status would also be discussed.

As per Reserve Bank of India (RBI) data, gross non-performing assets (GNPAs) of scheduled commercial banks (SCBs) have been declining during the last three years.


It has declined from Rs 8,35,051 crore (GNPA ratio of 7.33 per cent) as on March 31, 2021, to Rs 7,42,397 crore (GNPA ratio of 5.82 per cent) as on March 31, 2022 and further to Rs 5,71,544 crore (GNPA ratio of 3.87 per cent) as on March 31, 2023.

Last week, the finance ministry had review meeting with heads of PSBs and asked them to monitor all cases, especially the top 20 Insolvency and Bankruptcy Code cases as part of the management of their bad assets.

During a meeting with managing directors and CEOs of public sector banks (PSBs), Financial Services Secretary Vivek Joshi asked them to review the top 20 cases monthly for their resolution.


The meeting also reviewed the working of the National Asset Reconstruction Company Limited (NARCL).

Going forward, the finance minister would also review the functioning of banks on various aspects.

NARCL, a government entity, was incorporated in 2021 with a majority stake held by Public Sector Banks and the balance by private banks with Canara Bank being the sponsor bank.


It is registered with the Reserve Bank of India as an Asset Reconstruction Company under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

The Cabinet in 2021 cleared a proposal to provide a government guarantee worth Rs 30,600 crore to security receipts issued by NARCL.

As per the provision, NARCL would pay up to 15 per cent of the agreed value for the bad loans in cash and the remaining 85 per cent would be government-guaranteed security receipts. PTI DP ANZ DP MR