FM to meet PSU banks chiefs next week

NEW DELHI: Finance Minister Arun Jaitley will meet the heads of public sectors banks (PSBS) next week as part of the annual financial performance review exercise.

The meeting scheduled for September 25 would discuss a host of issues, including progress made with regard to reduction in non-performing assets, sources said.

The meeting will happen against the backdrop of the ‘Alternative Mechanism’ (AM) to merge three public sector banks -- Bank of Baroda, Vijaya Bank and Dena Bank--with a view to create a global-size

lender which will be stronger and sustainable.

Besides, he will also discuss credit growth and bad

loan situation, they said, adding that various recovery measures by banks and legislative steps taken by the government to expedite recovery are also part of the agenda.

Banks have stepped up efforts as far as recovery of bad loans is concerned, the sources added.

Lenders have made cash recovery of Rs 36,551 crore in the first quarter of the current fiscal. This is 49 per cent higher than the same quarter of the last fiscal. During 201718, banks recovered Rs 74,562 crore.

According to sources, the meeting will review annual financial performance of public sector banks, credit offtake in the economy, priority sector lending and progress made under various social sector schemes, including Atal Pension Yojana (APY) and Pradhan Mantri Jan Dhan Yojana (PMJDY).