Finance Ministry undertakes performance review of PSU banks; takes stock of financial inclusion drive

The Finance Ministry on Tuesday reviewed the performance of public sector banks (PSBs) in the backdrop of the first quarter numbers and asked them to step up lending to productive sectors of the economy.

The meeting chaired by Financial Services Secretary Sanjay Malhotra also deliberated on the need to cut non-performing assets and drive financial inclusion, sources said.

Managing directors and executive directors of all public sector banks who participated in the meeting were asked to focus on credit growth during the festive season, beginning in September. There was a comprehensive review of the progress of various government schemes, including the Kisan Credit Card, Pradhan Mantri Mudra Yojana, StandUp India, Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY).

The secretary also reviewed the performance of banks with respect to lending towards Animal Husbandry, Dairying and Fisheries sectors. PSBs have raked in more profits in the three months ended June on the back of a persistent decline in bad loans and the trend may have a positive bearing on their balance sheets in the coming quarters.