Finance minister Piyush Goyal
To take stock of the banking sector and discuss ways to improve their financial health, Finance Minister Piyush Goyal will meet the CEOs of public sector banks on Monday, said sources.
As it comes just three days ahead of the Budget 2019-20, the meeting assumes significance. The full-day meeting is likely to be attended by Reserve Bank of India Governor Shaktikanta Das. Recently, Goyal was given additional charge of the finance ministry.
As per the sources, the meeting will review the progress of various schemes of the government and will also review the credit flow to MSMEs, agriculture and retail sectors.
The meeting will also review financial performance of the banks for the nine months ended December 2018, said sources and added that the non-performing assets (NPAs) would also come up for deliberation.
Public sector banks (PSBs) have seen decline in bad loans by over Rs 23,000 crore from a peak of Rs 9.62 lakh crore in March 2018 due to various initiatives taken by the government.
At the same time, PSBs have also made a record in recovery of Rs 60,726 crore in the first half of the current financial year, which is more than double the amount recovered in the corresponding period last year.
According to the latest finance ministry data, non-NPA accounts overdue by 31 to 90 days (Special Mention Accounts 1 & 2) of PSBs have declined by 61 per cent over five successive quarters - from Rs 2.25 lakh crore as of June 2017 to Rs 0.87 lakh crore in September 2018.
In his first stint as finance minister for 100 days last year, Goyal was instrumental in setting up a committee headed by non-executive chairman of Punjab National Bank Sunil Mehta to examine whether creation of an asset reconstruction company or asset management company to help in faster resolution of stressed assets.
(With PTI inputs)
