Finmin reviews PSBs' financial performance, progress on financial inclusion

The banks' performance was measured on parameters such as credit growth, asset quality and recoveries; they were also assessed on penetration of insurance schemes

The finance ministry reviewed the financial performance of public sector banks (PSB) and progress made by them on the Centre’s financial inclusion initiatives.

PSBs’ quarterly financial performance was reviewed based on broad parameters such as credit growth, asset quality, and recoveries made during the year, and their projections for the entire year. Their preparedness for advancing loans ahead of the festive season was also assessed.

Besides financial performance, efforts taken by PSBs towards financial inclusion, improving penetration of the Centre’s flagship insurance schemes, and saturation campaign of the PM Jan Dhan Yojana (PMJDY) were also gauged.

Some of the PSBs such as Bank of Baroda, Canara Bank, and Union Bank of India have seen an increase in their share of Jan Dhan accounts this year as compared to last year, while others such as State Bank of India, Central Bank of India and Indian Bank saw their share of such accounts decline during the same period. PSBs collectively have opened 27.6 million accounts in about a year’s time.

For the flagship insurance schemes PM Jeevan Jyoti Bima Yojana (PMJJBY), PSBs have been able to enrol 4.65 million subscribers in June-August period, while PM Suraksha Bima Yojana (PMSBY) saw 8.4 million enrollments in June-August that has been lesser than the targets given by the government.

New subscribers availing the centre’s pension scheme, Atal Pension Yojana, was largely as per the target given to PSBs with 3.1 million new subscribers being added in the first four months of the financial year.