FM Nirmala Sitharaman to meet heads of PSBs on June 20; may nudge them for loan growth

“Banks would be urged to sanction loans for productive sectors to accelerate revival of the economy facing headwinds including from Russia-Ukraine war,” sources said.

Finance Minister Nirmala Sitharaman is scheduled to meet heads of public sector banks (PSBs) on June 20 to review performance of the lenders and progress made by them on various schemes launched by the government for revival of the economy. This is the first review meeting after the presentation of Budget 2022-23.

“Banks would be urged to sanction loans for productive sectors to accelerate revival of the economy facing headwinds including from Russia-Ukraine war,” sources said.

Last week during the Iconic Week celebration of the Finance Ministry, banks conducted outreach programme across the country where eligible borrowers were sanctioned loans on the spot.

“The Finance Minister would take a stock of credit growth, asset quality and business growth plan of banks,” sources said.

They said there would be a comprehensive review of various segments and progress in government schemes including Kisan Credit Card, Emergency Credit Line Guarantee Scheme (ECLGS).

In the Budget, ECLGS was extended by a year till March 2023. Further, the guarantee cover for the scheme was expanded by ₹50,000 crore to ₹5 lakh crore.