Finance Minister will hold a meeting with the heads of public sector banks on April 23, can ask this to speed up the economy

Public sector banks had earned a collective net profit of Rs 31,820 crore in the financial year 2020-21.

In PSBs, the government has infused a total of Rs 3.10 lakh crore capital during 2016-21. Public sector banks had earned a collective net profit of Rs 31,820 crore in the financial year 2020-21. But in the five consecutive years before that, these banks had to bear losses collectively.

Finance Minister Nirmala Sitharaman (Nirmala SitharamanLenders will hold a meeting with heads of public sector banks (PSBs) on April 23 to review the performance of institutions and assess the progress of government schemes for the revival of the economy. of the financial year 2022-23 Budget ,Budget 2022This will be the first meeting of the Finance Minister with PSB chiefs after presenting it. According to sources, in this meeting, the government can ask banks to increase the credit allocation to productive sectors to accelerate the pace of the economy. Sources said that in this meeting the progress of various government schemes and performance of various economic sectors will be thoroughly reviewed. Emergency Credit Line Guarantee Scheme under reviewECLGS) will also happen.

In this year’s budget, ECLGS has been extended till March 2023. Along with this, the government has also increased the guarantee cover given under the scheme by Rs 50,000 crore to Rs 5 lakh crore. Hospitality, travel, tourism and civil aviation sectors have also been brought under the ambit of this scheme.

Also, the credit limit for eligible borrowers was increased from 40 per cent to 50 per cent of their fund-based credit outstanding. The enhanced limit is subject to a maximum of Rs 200 crore per borrower.

Net profit of public sector banks increased

According to sources, this meeting to be held in New Delhi at the beginning of the financial year may decide the agenda of the banking sector for the whole year. In the last financial year, none of the public sector banks had incurred losses during April-December 2021 and PSBs earned a collective net profit of Rs 48,874 crore in these nine months.

Public sector banks had earned a collective net profit of Rs 31,820 crore in the financial year 2020-21. But in the five consecutive years before that, these banks had to bear losses collectively. The maximum loss of Rs 85,370 crore was in the year 2017-18.

Government gave Rs 3.1 lakh crore to banks

The government had formulated a holistic strategy to improve the financial position of these banks with emphasis on showing transparency on NPAs, recovery of value from stressed accounts, infusion of fresh capital in PSBs and reforms in PSBs. In PSBs, the government has infused a total of Rs 3.10 lakh crore capital during 2016-21.

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