Sanjay Malhotra presided over the meeting, in which financial inclusion and cutting non-performing assets were also discussed
Public sector banks (PSBs) were reviewed by the Finance Ministry on Tuesday in light of first-quarter numbers and asked to increase lending to productive sectors.
Sanjay Malhotra presided over the meeting, in which financial inclusion and cutting non-performing assets were also discussed.
The meeting instructed all public-sector bank executives and managing directors to prioritise credit growth during the holiday season, starting from September. It was also reported that progress has been made on a number of government schemes, which included Kisan Credit Card, Pradhan Mantri Suraksha Bima Yojana, StandUp India, Pradhan Mantri Jeevan Jyoti Bima Yojana, and Pradhan Mantri Mudra Yojana,
As part of the review, the secretary analysed the performance of banks in lending to the animal husbandry, dairy, and fishery sectors.
Despite a persistent decline in bad loans, PSBs made more profit in the three months ended June, suggesting a positive outlook for their balance sheets.
Regarding gross and net non-performing assets (NPAs), Bank of Maharashtra and the State of India were in the bottom quartile, based on an analysis of quarterly financial data published by public sector lenders.
For the three months ended June, all 12 public sector banks registered a profit of Rs 15,306 crore, representing an annual growth of 9.2 per cent. The June quarter saw lower profits for SBI and PNB, two of the largest public sector lenders.
There was a total profit of Rs 14,013 crore achieved by state-owned banks during the April-June period of the previous fiscal.