FM reviews performance of PSBs and their readiness to tackle Omicron-induced disruptions
Andalib Akhter / New Delhi
Union Minister of Finance Nirmala Sitharaman today reviewed the performance of Public Sector Banks (PSBs) with their Chairmen and Managing Directors via virtual mode . During the meeting, Mrs Sitharaman assessed various steps taken by PSBs in implementing pandemic-related measures as well as readiness to tackle possible future disruptions that may occur due to the ongoing variant of the COVID-19 pandemic.
While appreciating the Emergency Credit Line Guarantee Scheme (ECLGS), Ms Sitharaman also conveyed to the bankers to continue supporting agriculture sector, farmers, retail sector and MSMEs. She noted that business outlook is progressively improving in spite of the headwinds from global development and Omicron spread.
The Finance Minister underlined that contact intensive sectors may require more support to help them fight against the pandemic. Finance Minister also said that credit demand is expected to pick up on account of growth in retails segments, improvement in overall macroeconomic prospects and improving financial health of borrowers.
During the review meeting, bankers pointed out that PSBs have observed an improvement in the repayment culture in the country. They said that PSBs have performed well and, supported by various policy measures, provided the required impetus to the economy. It was observed that PSBs have recorded net profit of 31 thousand 820 crore rupees in Fiscal Year 2020-21 which is the highest in last 5 financial years. Public Sector Banks have also effected a recovery of over 5 lakh 49 thousand crore rupees during the last 7 financial years.
The review meeting was also attended by Union Minister of State for Finance Dr Bhagwat Kisanrao Karad and Secretary, Department of Financial Services (DFS), Debasish Panda, along with senior officials.
Finance Minister also reviewed progress made in launching the initial public offering of Life Insurance Corporation of India (LIC) as the ongoing third Covid-19 wave raises concerns over insurer’s listing, that’s touted to be India’s largest.
The review was done with officials of Department of Investment and Public Asset Management (DIPAM), Department of Financial Services (DFS), Insurance Regulatory and Development Authority of India (IRDAI), and LIC.