Our Correspondent
Finance Minister Piyush Goyal will meet heads of 13 public sectors banks in New Delhi today to resolve various issues concerning them. This will be the first meeting with the heads of the Public sector banks after their annual financial result for 2017-18.
The meeting will see participation from PNB, Oriental Bank of Commerce, Punjab and Sind Bank, UCO Bank, United Bank of India and Allahabad Bank.
Besides, Managing Director of Bank of Maharashtra, Andhra Bank, Canara Bank, Indian Bank and Vijaya Bank would be present in the meeting.
This is the first meeting with the heads of the PSBs after their annual financial result for 2017-18. Most of the banks posted loss in the fourth quarter of the last fiscal.
Most of the banks posted loss in the fourth quarter of the last fiscal. These banks are headquartered in the east, south and northern regions.
Sources said almost all banks have reported increase in non-performing assets as per the February 12 guidelines of the Reserve Bank of India. The new guidelines have specified framework for early identification and reporting of stressed assets.
In addition, the issues concerning banks which are under the Prompt Corrective Action framework of the Reserve Bank, would also be discussed.
Besides, almost all banks reported increase in non-performing assets due to February 12 guidelines of the Reserve Bank of India (RBI).
The new guidelines have specified framework for early identification and reporting of stressed assets.
As per the revised guidelines, the banks will be required to identify incipient stress in loan accounts, immediately on default, by classifying stressed assets as special mention accounts (SMA) depending upon the period of default.
All lenders will be required to put in place Board- approved policies for resolution of stressed assets under this framework, including the timelines for resolution, it had said, adding, “As soon as there is a default in the borrower account with any lender, all lenders – singly or jointly – shall initiate steps to cure the default“.