New Delhi, Jun 3 : Against the backdrop of mounting bad loans and record losses of public sector banks, Finance Minister Arun Jaitley will hold a quarterly performance review on Monday with the heads of PSBs and Financial Institutions. He would “review the overall performance of PSBs during the financial year 2015-16 as well as with regard to the flow of credit to agriculture, insurance and MSE sectors among others”, the Finance Ministry said in a statement. Jaitley will also review the progress and performance of the new initiatives of the present government including Stand Up India, MUDRA, Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Surkasha Bima Yojana (PMSBY) and Atal Pension Yojana among others, it added.(Read: India now a ‘lower-middle-income’ economy for World Bank)Also Read - Padma Shri Award 2021: Kangana Ranaut, Karan Johar Among 119 Recipients This Year
The meeting will also take stock of the performance of PSBs with regard to the new projects and proposals, stalled projects and possible remedial measures among others. Besides, it said, issues relating to housing loan, medium and small enterprises credit, financial inclusion and literacy are also likely to be discussed. The meeting assumes significance as several PSBs have posted record losses in the fourth quarter of the 2015-16. Also Read - Banks Will Carry Out Credit Outreach Efforts In Every District To Keep Momentum Of Stimulus, Says Sitharaman
Gross NPAs or bad loans of PSBs rose from Rs 2,67,065 lakh crore in March 2015 to Rs 3,61,731 lakh crore in December. Also Read - Budget 2021: Interesting Facts About Indian Budget And How It Changed Over The Years
The gross non-performing assets (NPAs) of the PSBs increased from 5.43 per cent of advances as on March 2015 to 7.30 per cent as on December 31. Along with the CEOs of PSBs and FIs, the meeting will also be attended by Minister of State for Finance Jayant Sinha, Department of Financial Services Secretary Anjuly Chib Duggal, and senior officers of the Ministry of Finance among others.