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

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.