On August 25, Finance Minister Nirmala Sitharaman and the CEOs of public sector banks (PSBs) will meet. This meeting will review banks’ performance and discuss progress in accelerating the economy that has been affected by corona.
Sitharaman recently stated that the government was ready to take any steps necessary to speed up economic growth in the wake of the corona outbreak. Sitharaman had stated that development would be given priority and for this, RBI as well as we are both with him.
These topics will be addressedRBI at this meeting. The meeting may encourage banks to increase their loans to productive sector. A scheme called the Emergency Loan Facility Guarantee Scheme (ECLGS), which is worth Rs 4.5 lakh crore, will be also reviewed.
The Finance Minister will likely take stock of non-performing assets (NPA) as well. Various reforms of banks will also be discussed.
Consistent efforts by the government brought down NPA debt from Rs 6.78 crore crore to March 31, 2020 to Rs 6.17 crore crore on March 31, 2021. 7.40 lakh crore at 31 March 2019,