“FM, Shri @arunjaitley exhorted the banks to ensure all steps at their end to ensure clean lending & effective action in cases of fraud & wilful default, to justify the trust reposed in banks. Banks must strive to be seen always as institutions of clean & prudent lending,” the Finance Ministry said in a tweet.
The Union Minister of Finance & Corporate Affairs,Shri @arunjaitley chairing the Annual Review Meeting on PSBs Performance & Reforms in New Delhi today.Meeting is attended by 21 CEOs of PSBs where issues of Credit Growth,Recovery, Financial Inclusion & reforms are being discussed pic.twitter.com/MS0NK8qhXW
— Ministry of Finance (@FinMinIndia) September 25, 2018
The meeting is taking place in the backdrop of the ‘Alternative Mechanism’ (AM) deciding to merge three public sector banks — Bank of Baroda, Vijaya Bank and Dena Bank — with a view to creating a global-size lender which would be stronger and sustainable.
Banks have stepped up efforts as far as recovery of bad loans is concerned.
Lenders have made recovery of Rs 36,551 crore in the first quarter of the current fiscal. This is 49% higher than the same quarter of the last fiscal. During 2017-18, banks recovered Rs 74,562 crore.
As per another tweet of the ministry, Jaitley said that formalisation of the Indian economy coupled with inclusive growth through massive financial inclusion has unlocked purchasing power which would drive India’s growth.
“This should help India sustain a growth rate of around 8%,” he was quoted as saying in a tweet.