Finance ministry likely to hold meeting with Bankers on November 11-12

The finance ministry is likely to hold a meeting with top management of public sector banks on November 11 and 12 to discuss various issues, including bad loans and recapitalisation, sources said.

The meeting assumes significance in the light of the recent government announcement of fund infusion in the public sector banks over a period of two years.

Last month, the government had announced a Rs 2.11 lakh crore bank recapitalisation plan, of which Rs 76,000 crore will come through budgetary support and bank stake sales, and Rs 1.35 lakh crore as bonds.

The meeting, according to sources, would discuss on increased lending to Ministry of Micro, Small & Medium Enterprises (MSME), recovery on non-performing assets (NPAs), credit growth, capacity building among others.

While announcing the unprecedented Rs 2.11 lakh crore capital infusion roadmap for the public sector banks last week, Finance Minister Arun Jaitley had said, this will be accompanied by series of banking reforms over next few months.

Banks are facing mounting NPAs to the tune of Rs 8 lakh crore. The bank NPAs are skirting the double digit mark at present and expected to grow further.

NPAs of public sector banks have increased from Rs 2.75 lakh crore in March 2015 to Rs 7.33 lakh crore as on June 2017.

1 thought on “Finance ministry likely to hold meeting with Bankers on November 11-12

  1. The government is creating the chaos of merger which amounts to dishonesty people to sore npa of banks.The npa amounts a little 2 to 3 percent of gdp.The schemes of govt amounts major share of npa and big big concerns directly or Indirectly its own people involved.No doubt recapltailastion is good step.Please not weeken the economy spreading in the name of reform and destroying nationalisation .The net interest
    Margin sd be take care of instead making banks to sale third product forgetting own roles for development of economy.

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