According to sources, the meeting was chaired by financial Services Secretary Sanjay Malhotra also discussed the need to reduce non-performing assets and promote financial inclusion. The meeting directed the managing directors and executive directors of various public sector banks to focus on credit expansion starting during the festive season in September.
Progress of several government initiatives, including: Pradhan Mantri Mudra Yojanastandup india, Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), And Pradhan Mantri Suraksha Bima Yojana (PMSBY) was also thoroughly reviewed. The Secretary also examined the performance of banks in terms of lending to dairy, fishing and animal husbandry industries.
Due to a steady decline in bad loans, PSBs saw higher earnings in the three months ended June. This trend could have a favorable impact on their balance sheets going forward. A review of quarterly financial data released by public sector lenders revealed that
(BOM) and () were in the lowest quartile for gross non-performing assets (NPAs) and net NPAs in the June quarter.
All the 12 public sector banks collectively reported a profit of around Rs 15,306 crore for the three months ended June, representing a year-on-year growth of 9.2%. Major public sector lenders SBI and, meanwhile, reported a dip in profits for the quarter ended June. The state-owned banks made a total profit of Rs 14,013 crore from April to June of the last financial year.