FM to hold performance review of PSBs on Monday

Against the backdrop of mounting bad loans and record losses of public sector banks, Finance Minister Arun Jaitley will hold a quarterly performance review on Monday with the heads of Public Sector Banks (PSBs) and Financial Institutions (FIs).

"He would review the overall performance of PSBs during the financial year 2015-16 as well as with regard to the flow of credit to agriculture, insurance and MSE sectors among others", the Finance Ministry said in a statement.

Jaitley will also review the progress and performance of the new initiatives of the present government including Stand Up India, MUDRA scheme, Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Surkasha Bima Yojana and Atal Pension Yojana among others, it added.

The meeting will also take stock of the performance of PSBs with regard to the new projects and proposals, stalled projects and possible remedial measures among others.

Besides, it said, issues relating to housing loan, medium and small enterprises credit, financial inclusion and literacy are also likely to be discussed.

The meeting assumes significance as several PSBs have posted record losses in the fourth quarter of the 2015-16.

Gross non-performing assets (NPAs) of PSBs rose from Rs. 2,67,065 lakh crore in March 2015 to Rs. 3,61,731 lakh crore in December.

The gross NPAs of the PSBs increased from 5.43% of advances as on March 2015 to 7.30% as on December 31.

Along with the Chief Executive Officers of PSBs and FIs, the meeting will also be attended by Minister of State for Finance Jayant Sinha, Department of Financial Services Secretary Anjuly Chib Duggal, and senior officers of the Ministry of Finance among others.