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Defer avoidable expenditure, reduce costs: Govt tells public sector banks

Further, the banks have been asked to effect significant reduction in expenditure on activities other than those pertaining to core business activities

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\DFS has directed banks to avoid travel and adopt digital means of communication as well as make effective use of locally available administrative officers

Press Trust of India New Delhi

3 min read Last Updated : Jun 17 2020 | 9:23 PM IST

The government on Wednesday asked state-owned banks to defer avoidable expenditure, including purchase of staff cars and refurbishment of guest houses, to ensure more productive utilisation of financial resources amid the coronavirus pandemic.

In a detailed advisory to the heads of all public sector banks, the Department of Financial Services (DFS) said it was necessary that the banks take appropriate measures to ensure productive use of their financial resources for core business activities.

The advisory also comes against the backdrop of Punjab National Bank recently purchasing three Audi cars worth over Rs 1.30 crore for travel of its top executives.

Topics : Coronavirus public sector banks PSBs lending Narendra Modi government

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