FM likely to meet heads of PSU banks in first half of Sept

The meeting will review financial performance of banks, take stock of the NPA situation and discuss the 'Indradhanush' plan

Finance Minister Arun Jaitley is likely to meet heads of PSU banks in the first half of next month, days after the government unveiled 7-point agenda to revive the fortunes of PSBs.

The performance review meeting of Public Sector Banks (PSBs) may take place in the first half of September and the exact date will be decided soon, sources said.

It could happen in the first week of next month depending on confirmation from the Finance Minister, they added.

Besides discussing the 'Indradhanush' plan for revamp of PSBs, the meeting will review financial performance of banks and take stock of the non-performing assets (NPA) situation.

The gross NPA of the PSBs rose to 6.03 per cent at the end of June 2015 as against 5.20 per cent in March 2015.

The meeting is expected to review credit offtake by sectors such as home, education and minority as well as the progress made under the Jan Dhan Yojana and Prime Minister's social security schemes, among other issues.

Jaitley is expected to also review the progress of three social security schemes namely Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension Yojana (APY), among others.

He will also review the progress made with regard to Micro Units Development & Refinance Agency (MUDRA), expeditious disposal of public grievances and Credit Enhancement Guarantee Scheme for Scheduled Castes, among others.

Last week, the government announced 7-point agenda including Rs 70,000 crore capital infusion in PSBs in four-year period starting with Rs 25,000 crore in this fiscal and creation of Bank Board Bureau (BBB).

Besides, it announced measures to de-stress the banks of NPAs by introducing governance reforms.

In order to professionalise PSBs, the government also announced appointment of two private sector bankers to head Bank of Baroda and Canara Bank while also making appointments to three other large state-run banks from within the government sector.