Press Information Bureau

Government of India

Ministry of Finance

11-June-2012 16:56 IST

Union Finance Minister to Review the Performance of Banks during the Annual Meeting of CEOs of Public Sector Banks and Financial Institutions tomorrow

The Union Finance Minister Shri Pranab Mukherjee will review the annual performance of banks and financial institutions tomorrow relating to Agriculture Credit, MSME (Micro, Small and Medium Enterprises) Credit, Housing Loans, Education Loans, Gross and Net Non Performing Assets (NPAs) along with slew of measures initiated by the Department of Financial Services, Ministry of Finance in the areas of improving productivity and efficiency in the PSBs.

The Union Finance Minister Shri Pranab Mukherjee will do the aforesaid review of the performance of the banks and Financial Institutions during his Meeting with the Chief Executive Officers (CEOs) of Public Sector Banks (PSBs) and Financial Institutions (FIs) in the national capital tomorrow. The aforesaid Meeting is being held at a time when the Indian economy is facing various challenges. Our financial sector is having immense potential in economic development of the country. However, there is a need to indentify the opportunities and recognize the challenges to work towards a sustainable and inclusive growth. The aforesaid meeting is likely to be attended among others by the Minister of State (Finance), Deputy Governor, RBI and senior officers of the Ministry of Finance.

It is also proposed to discuss the progress made in regard to Financial Inclusion named “Swabhimaan” and to ensure that the benefits of Government Schemes directly reach the beneficiaries in a time bound plan and through Electronic Fund Transfer (EBT). The progress made in respect of banking facilities in North Eastern and hilly States with population from 1000 to 2000 will also be reviewed. Government is making all efforts in ensuring that each family has at least one account in the rural areas.

The issues relating to New Pension Scheme – NPS lite, known as ‘Swavalamban’ featuring self sustainability, scalability, individual choice, maximising outreach etc will also be discussed. The Finance Minister is likely to appreciate the CEOs for enhancing the Net Profit of PSBs and for affecting unprecedented recovery against the outstanding dues. He is also likely to impress upon them to continue their endeavour of tackling the NPAs. Another important banking area likely to be deliberated upon is the role of Regional Rural Banks (RRBs), as with their vast reach in the rural areas, they have an important role to play in the rural development. Their recapitalization and strengthening with technology will also be discussed as they have come on CBS platform.

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Financial sector review urges PSBs to strengthen governance, tackle NPAs, and accelerate financial inclusion via electronic transfers. Review of public sector bank and financial institution performance will concentrate on credit delivery to agriculture, MSMEs, housing and education, and on gross and net Non Performing Assets, with emphasis on Department of Financial Services measures to improve PSB productivity, efficiency and recoveries. The meeting will also assess Financial Inclusion under 'Swabhimaan' and use of Electronic Benefit Transfer, progress in banking access for North Eastern and hilly States, the 'Swavalamban' pension initiative, and recapitalization and technological strengthening of Regional Rural Banks.