The ministry also urged heads of public sector lenders to strengthen IT security systems and cyber security to check frauds.
According to sources, banks were asked to sanction loans to productive sectors to accelerate the revival of the economy facing adversity, including the Russo-Ukraine war.
According to reserve Bank of IndiaAccording to the latest data from the U.S., the growth in lending by public sector banks has increased to 7.8 percent in March 2022 from 3.6 percent a year ago. Some public sector banks registered a growth of 26 per cent. (BoM) registered a 26 per cent growth in gross advances to Rs 1,35,240 crore at the end of March 2022. This was followed by an increase of 10.27 per cent and 9.66 per cent respectively.
The Pune-headquartered BoM saw deposits growth of 16.26 per cent and raised Rs 2,02,294 crore at the end of March 2022. Union Bank of India stood second with 11.99 per cent growth in deposits (Rs 10,32,102 crore), while
increased by 10 per cent to Rs 5,84,661 crore.
Sources said banks have been asked to expedite resolution of non-performing assets (NPAs) and focus on recovery of bad loans.
Sources said the meeting took stock of the asset quality and business development plans of banks, non-performing assets (NPAs) of Rs 100 crore and the status of recovery was also discussed.
It is to be noted that the meeting was held against the backdrop of all the PSBs making profit for the second consecutive financial year. He has more than doubled his net profit to Rs 66,539 crore in FY22. The combined profit of the 12 state-owned banks in FY2011 stood at Rs 31,820 crore.
However, there was a collective loss for five consecutive years during 2015-16 to 2019-20.
The highest net loss was recorded at Rs 85,370 crore in 2017-18, followed by a loss of Rs 66,636 crore in 2018-19; 25,941 crore in 2019-20; Rs 17,993 crore in 2015-16 and Rs 11,389 crore in 2016-17.
To improve the financial health of PSBs, the government implemented a comprehensive 4R strategy – transparent recognition of NPAs, recovery and recovery of value from stressed accounts, recapitalization of PSBs, and reform of PSBs and the wider financial ecosystem – with a responsible and to the broader financial ecosystem. clean system.
Comprehensive steps were taken under the 4R strategy to reduce the NPAs of PSBs.
As part of the strategy, the government has invested Rs 3,10,997 crore for recapitalization of banks during the last five financial years – 2016-17 to 2020-21, of which Rs 34,997 crore is through budgetary allocation and Rs. 2, 76,000 crore through issuance of recapitalization bonds to these banks.