Finance Minister Arun Jaitley to meet chiefs of PSU banks on Nov 23

FM Arun Jaitley

IN A bid to take stock of the financial conditions of the PSU banks, finance minister Arun Jaitley will meet heads of PSU banks on November 23. He will discuss issues including bad loans and credit flow to productive sectors of the economy.
The performance review meeting of public sector banks will also take stock of the credit flow to productive sectors to spur economy and review of 'Indradhanush' plan. The 'Indradhanush' plan is a seven-point agenda to revive the fortunes of PSBs, an...
agency report said quoting finance ministry sources.
The performance review meeting of public sector banks (PSBs) will also take stock of the credit flow to productive sectors to spur economy and review of 'Indradhanush' plan, the seven-point agenda to revive the fortunes of PSBs.
The government in August announced seven-point agenda, including Rs 70,000 crore capital infusion in PSBs in four-year period starting with Rs 25,000 crore in the current fiscal and measures to de-stress the banks of NPAs by introducing governance reforms.
The gross NPA of the PSBs increased to 6.03 per cent at the end of June 2015 compared to 5.20 per cent in March 2015.
The meeting will also review credit offtake by sectors such as home, education and corporates as well as the progress made under the Jan Dhan Yojana and Prime Minister's social security schemes, among other issues.
The meeting will also take stock of various measures taken by state-owned banks in the aftermath of Rs 6,100-crore Bank of Baroda black money remittance case to check recurrence of such incidence.
RBI in its September bi-monthly monetary policy review had cut interest rate by 0.5 per cent, much higher than those popular expectations for a rate cut of 25 basis points. The benchmark repurchase (repo) rate has subsequently come down from 7.25 per cent to 6.75 per cent, the lowest in four-and-a-half years.
The FM is likely to take stock of the progress of three social security schemes. They include Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension Yojana (APY) among others. He will also review the progress made with regard to Micro Units Development & Refinance Agency (MUDRA).