FM Jaitley to review Q1 performance of PSU banks

FM Jaitley to review Q1 performance of PSU banks

FM Jaitley to review Q1 performance of PSU banks

 Finance Minister Arun Jaitley will meet the heads of public sector banks on September 16 to review their first quarter performance which has been marred by bad loans of the lenders.

“The Finance Minister will review the first quarter performance of public sector banks and financial institutions on September 16,” sources said.

Besides, he will also discuss credit growth and bad loan situation, they said, adding that the various recovery measures by banks and the legislative steps taken by the government to expedite recovery are also part of the agenda.

Gross non performing assets of the public sector banks have increased from 5.43% (Rs 2.67 lakh crore) in 2014-15 to 9.32% (Rs 4.76 lakh crore) in 2015-16.

Many banks including Bank of India, Dena Bank, and Central Bank of India, reported losses for the quarter ended June 30, due to a sharp jump in provisions for NPAs on account of an asset quality review mandated by the RBI in December.

At the same time, a number of banks including the country’s largest lender SBI witnessed a 78% drop in consolidated profit to Rs 1,046 crore as against Rs 4,714 crore profit in the same quarter a year ago. Besides, Bank of Baroda, Andhra Bank and Union Bank of India among others posted massive decline in profit.

In a bid to shore up cash-strapped public sector banks, the government last month announced infusion of Rs 22,915 crore capital in 13 lenders including SBI and Indian Overseas Bank to revive loan growth that has hit a two-decade low.

Sources said, the meeting will also take stock of schemes such as Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension Yojana (APY).

Jaitley will also review the progress made with regard to Micro Units Development & Refinance Agency (Mudra) and Stand Up India programme.

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