PSBs to coordinate with DFS, Revenue department: Jaitley

Jaitley says NPA levels unacceptable, calls it problem from past; adds discom reforms will reduce stress

The department of financial services (DFS) will coordinate with banks and the revenue department to improve the health of the state run banks, finance minister Arun Jaitley said on Monday after the quarterly review of public sector banks.

He added that the pressures of the past need to be removed. 

Bankers have given their suggestions on steel and aluminium, which faces stress on account of global headwinds.

On the low credit offtake despite the interest rate cut by RBI he said: "Credit offtake has to pick up. The steps of RBI and banks will improve quality of assets."

The meeting saw participation from all PSBs besides secretaries of various ministries including micro, small and medium enterprises, agriculture, textiles, rural development among others.

The secretaries made presentations on requirements of different sectors and needs.

The meeting also saw discussion on investment in solar power generation besides performance of government's social security programmes in insurance, pension and banking.

The roadmap for the rest of the year was discusses for MUDRA bank, Jan Dhan Yojana among others. There has been an impetus to these schemes and ot needs to be continued, said Jaitley. 

On the health of PSBs, Jaitley said that they have carried over the problems of the past. "The stress is attributable to various sectors. There is an unacceptable level of NPAs. It is mainly the prpblem of the past. Where discussed banks and also the ways to imprpve the overall health of the economy," said Jaitley.

He added that the measures announced for the state power discoms will help ease some stress. Also, the situation related to highways has improved, he added.