Centre assures full support to PSBs to improve delivery services to farmers

New Delhi [India], Jan 28 (ANI): Pushing for financial inclusion, the Central government on Monday assured public sector banks (PSBs) its full support in their objective to improve delivery services to the farmers.
After a meeting with top executives of public sector banks, Finance Minister Piyush Goyal said that ways to make banking operations more efficient and profitable, recovery of money by the banks and measures to promote finances for housing were among various issues discussed.
On the back of recapitalisation of PSBs by over Rs 2.6 lakh crore and recovery of over Rs 2.8 lakh crore including record recovery of over Rs 1 lakh crore in the first three quarters of the current financial year, as clean-up began in 2015, and comprehensive reforms for better underwriting of loans, PSBs committed to significantly step up the level of domestic credit growth from 9.1 per cent year-on-year at the end the second quarter of the current financial year.
The review meeting of PSBs was also attended by Secretary, Department of Financial Services, Rajiv Kumar. The review was against the backdrop of visible signs of strengthening of the finances of PSBs as a result of the Centre’s comprehensive 4Rs approach of recognition, resolution, recapitalisation, and reforms, which has positioned PSBs to step up their support to meet the lending needs of a growing economy.
Further, enabled by the recently approved MSME Restructuring Scheme and the 12-point agenda for supporting MSMEs announced by Prime Minister Narendra Modi at the launch of the MSME Outreach and Support Programme, PSBs committed to stepping up MSME lending.
Banks also committed to further improving the robust growth in credit and reducing trend in turnaround time for loan applications through the growing use of fin-tech and technology as evidenced by the success of the 59 minutes loan portal, through which over 1.25 lakh MSMEs have been accorded in-principle approval.
Banks agreed to work further on the increasing use of advanced data analysis and where possible, artificial intelligence algorithms for better, faster and hassle-free credit decisions and monitoring of accounts. Amidst a number of positives, Finance Minister Goyal highlighted the need for each and every PSB to ensure that recent gains are sustained and better service delivered to all stakeholders.
Banks also committed to stepping up their efforts for financing under Pradhan Mantri Awas Yojana which is aimed at securing Housing for All by 2022.
PCA (prompt corrective action) banks were advised to maintain the trend of improvement in performance, with a view to bringing them out of the PCA framework at the earliest. In this connection, the significant reduction in NNPAs or net nonperforming assets and significant de-risking of their credit portfolios during the current financial year were taken note of.
Earlier, RBI Governor Shaktikanta Das also interacted at length with bank CEOs, noting the importance of PSBs for the economy at all times and especially at the present juncture in helping meet broader economic goals.
He also flagged the need for PSBs to extend credit while observing prudential norms but without excessive conservatism. He also asked banks to take advantage of the MSME restructuring scheme to support viable MSME units. RBI Governor Das flagged the need for further strengthening various aspects of banking, including underwriting standards, capacity building, use of technology and governance. (ANI)