New Delhi: Finance minister Niramala Sitharaman on Saturday met with managing directors of public sector banks (PSBs) to review performance amidst the failure of a few banks in the US and the liquidity crisis faced by Credit Suisse.
Ministry of Finance in a tweet informed that Union Finance Minister Niramala Sitharaman chaired a meeting to review the performance of Public Sector Banks on various financial, efficiency, and health parameters.
“Union Finance Minister Smt. @nsitharaman chairs the meeting to review performance of Public Sector Banks #PSBs on various financial, efficiency and health parameters,” Ministry of Finance tweeted.
This review meeting took place at a time when the US banking sector is unstable as a result of Silicon Valley Bank’s recent failure and the subsequent contagion of other banks.
The Silicon Valley Bank, a well-known international lender for technology entrepreneurs, failed on March 10 as a result of a bank run, necessitating intervention from the US federal government.
The news agency PTI, previously, had reported that the meeting is going to take stock of the progress made by banks in achieving targets set for the various government schemes, including Kisan Credit Card (KCC), Stand-Up India, Pradhan Mantri Mudra Yojana (PMMY), and emergency credit line guarantee scheme (ECLGS) to help businesses affected by COVID-19.
The banks will also be asked to concentrate on the issues emphasised in the Budget, particularly loan flow to productive sectors, as this is the first full review meeting following the presentation of the Budget 2023–24, the report had said citing a source.
The finance minister will assess the banks’ capital-raising and business expansion plans for the upcoming fiscal year, as well as financial inclusion, loan growth, asset quality, and non-performing assets (NPAs) of Rs 100 crore and the recovery status, it added.
