NEW DELHI: In light of the failure of a few banks in the United States and the liquidity situation that Credit Suisse is currently experiencing, Union Finance Minister Niramala Sitharaman is scheduled to meet with Managing Directors and CEOs of Public Sector Banks (PSBs) on March 25 for a performance review.
Many government programmes, including the Kisan Credit Card (KCC), Stand-Up India, Pradhan Mantri Mudra Yojana (PMMY), and emergency credit line guarantee scheme (ECLGS) to aid firms impacted by COVID-19, would be reviewed at the conference, according to sources.
Notably, this is the first complete review meeting since the Budget 2023–24 was presented, and banks are being asked to concentrate on the topics raised in the Budget, such as credit flow to productive sectors.
As per reliable information from the source, it said that Sitharaman would examine the banks' business expansion plans for the upcoming fiscal year as well as their strategies for loan growth, asset quality, capital raising, and asset quality. The conference on Saturday will also tackle the topic of 100 crore in non-performing assets (NPAs) as well as the state of the recovery.
Notwithstanding the banking crisis, the US Fed raised interest rates by 25 basis points to control excessive inflation. The Fed has thus far raised rates from zero to 4.75 to 5%, all in only one year, to combat the high inflation that has persisted.
The Indian banking sector is in good form, according to analysts and policymakers, and can manage the circumstances brought on by monetary tightening.
The asset quality of public sector banks has significantly improved as a result of the government's various reform initiatives, with the gross non-performing assets ratio falling from a peak of 14.6% in March 2018 to 5.53% in December 2022.
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