 "Nirmala Sitharaman, Nirmala, Finance Minister")
Union Finance Minister Nirmala Sitharaman will review the performance of public sector lenders over the past year, including on the non-performing asset (NPA) front, in a meeting with bank chiefs on August 19, according to two government officials familiar with the matter.
“The meeting is likely to focus on reviewing the banks' performance over the past year, as well as discussing cybersecurity and the digital infrastructure of banks,” said the first government official on condition of anonymity. The person said it was a general review meeting that takes place periodically.
Sitharaman had last chaired a meeting with heads of public sector banks (PSBs) in December 2023.
A second official said she was also expected to review ongoing financial inclusion schemes such as Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY), and Pradhan Mantri Mudra Yojana (PMMY).
“It is also expected that the FM will provide directions on how the schemes announced in the Budget for micro, small and medium enterprises (MSMEs) should be implemented on the ground. A review of deposit performance of banks and NPAs can also take place,” the second official added.
An email sent to the finance ministry remained unanswered till the time of going to the press.
PSBs posted 16.1 per cent year-on-year (Y-o-Y) growth in net profit at Rs 39,974 crore during the June 2024 quarter.
While net interest income (NII) showed subdued growth of 7.1 per cent, provisions and contingencies declined by 10.5 per cent Y-o-Y. This aided the bottom line to show steady growth.
Sequentially, net profit declined by 6.7 per cent from Rs 42,847 crore in the March quarter, according to data compiled by BS Research Bureau for 12 listed PSBs.
The first official added that Sitharaman would chair the review meeting of the regional rural banks (RRBs) on the same day in the evening.
“The review will include discussions on enhancing the digital capabilities of RRBs,” said the official.
As of March 31, 2023, there were 43 RRBs sponsored by 12 scheduled commercial banks, with 21,995 branches and operations. There were 305.3 million deposit accounts and 29 million loan accounts in 26 states and three Union Territories (Puducherry, Jammu & Kashmir, and Ladakh).
