1. Arun Jaitley to review PSBs’ performance on June 12

Arun Jaitley to review PSBs’ performance on June 12

Finance minister Arun Jaitley will review the performance of public-sector banks (PSBs) on June 12 here, amid mounting pressure to resolve the vexed issue of massive toxic assets that have eroded the banks’ ability to lend, hurting investments.

By: | New Delhi | Published: June 10, 2017 6:55 AM
A sample of 39 top banks showed NPAs accounted for Rs 6,97,409 crore — or 9.3% of their advances — as of December 2016. (PTI)

Finance minister Arun Jaitley will review the performance of public-sector banks (PSBs) on June 12 here, amid mounting pressure to resolve the vexed issue of massive toxic assets that have eroded the banks’ ability to lend, hurting investments. Major issues to be discussed in the meeting include non-performing assets (NPAs) of PSBs, status of credit to small and medium enterprises, Stand-up IndiaC (launched to support entrepreneurship among women and SC & ST communities) and Mudra Yojana (through which the government provides funding to the non-corporate small business sector). NPAs reached 9% of total advances by September 2016, double their level a year earlier. Importantly, more than four-fifths of the NPAs were in the public sector banks, where the NPA ratio had touched almost 12%. A sample of 39 top banks showed NPAs accounted for Rs 6,97,409 crore — or 9.3% of their advances — as of December 2016. The one-day meeting will also focus on financial inclusion and literacy, review of the performance of social security schemes such as Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension  Yojana (APY).

Other issues like cyber security, digitalisation of banking transactions, rural development, farm credit and education loan will also be discussed.
The role and preparedness of banks in the implementation of the Goods and Services Tax (GST) regime, scheduled to be rolled out from July 1, could also be discussed.

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