Ministry of Finance reviews performance of PSBs, pushes for credit growth

The govt reportedly said that it was keen on National Asset Reconstruction Company of India Ltd (NARCL) starting its operation

The Ministry of Finance, in a review meeting, directed public sector banks to push credit growth. Chaired by Financial Services Secretary Sanjay Malhotra, the meeting also discussed the non-performing assets (NPA) situation at PSBs, a report by The Economic Times (ET) stated.

The government reportedly said that it was keen on National Asset Reconstruction Company of India Ltd (NARCL) starting its operation. The PSBs, according to ET, provided the ministry with data on the accounts being transferred to NARCL. 

The review of the performance of PSBs was done under the Enhanced Access and Service Excellence or EaseNext reforms. Under this, the lenders need to focus more on digital lending, and inclusive banking. The special focus for such lending has to be on small businesses and agriculture. 

The banks also discussed the steps they have taken to enhance the collaboration among themselves. They also outlined a three-year roadmap of their business strategy, the report added.

The government, on the other hand, asked the larger banks to share their experience with the small banks and also provide them with guidance, wherever required.