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    FM Nirmala Sitharaman to meet CEOs of PSU banks on Monday

    Synopsis

    The meeting is expected to review fund flow to stressed NBFC and MSME (micro, small and medium enterprises) sectors, sources said.

    PTI
    NEW DELHI: Finance Minister Nirmala Sitharaman will hold a review meeting with CEOs of public sector banks (PSBs) on Monday to discuss various issues, including progress on credit offtake, as part of efforts to prop up the economy.

    The meeting is expected to review fund flow to stressed NBFC and MSME (micro, small and medium enterprises) sectors, sources said.

    Banks are expected to present report card on partial credit guarantee scheme and fund raising from market to enhance their capital base.

    The Centre in August issued guidelines on operationalising Rs 1 lakh crore partial guarantee scheme under which PSBs can purchase high-rated pooled assets of financially sound non-banking finance companies (NBFCs).

    NBFCs, including housing finance companies (HFCs), came under stress following a series of defaults by the group companies of IL&FS in September last year.

    Besides, the meeting will also assess the progress of first phase of outreach programme held across 226 districts across the country.

    This will be the second meeting of Sitharaman with CEOs of PSU banks in less than a month.

    The first phase of 'Loan Mela' for providing credit to agriculture, vehicle, home, MSME, education and personal categories ended on October 7.

    During the annual performance review earlier this month, PSBs decided to undertake outreach exercise in 400 identified districts. Later, the private sector too expressed willingness to join the initiative.

    The second phase will be held in 209 districts between October 21 and October 25, just before Diwali.

    Additionally, the Centre will also review loan delivery through 'psbloansin59minutes' portal.

    The platform has helped reduce turnaround time for loan processes in such a way that MSMEs can get an eligibility letter and in-principle approval in 59 minutes and can choose the bank of their choice.

    After the approval letter is received, the loan is expected to be disbursed in 7-8 working days.

    Touted as the country's largest online lending platform, the portal was launched by Prime Minister Narendra Modi in November 2018 with an aim to make credit access and banking for MSMEs transparent and hassle-free.

    The portal sanctioned loans worth over Rs 35,000 crore in less than four months from its launch.

    As on March 31, 2019, more than 50,706 proposals had got in-principle approval and 27,893 proposals had been sanctioned.

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    6 Comments on this Story

    Ramesh Shah380 days ago
    YES.... TO FINALISE THE NPAS FIGURES TO B ANNOUNCED IN FRONT OF THE PRESS...... DON''T SAY WE. ARE STILL COUNTING.....
    Gopalakrishnan Krishnan380 days ago
    The FM has to advise the PSU banks to ensure the following to enhance their image and improve performance.1 Improve the Customer service and see that the Staff have some basic knowledge of bankning.2 The banks should realise that they cannot sustain in business by encouraging bad borrowers and fraudsters to loot the depositors money. 3. There should be some semblance of administration to enhance the over all efficiency of Statutory auditors and banks own management in running the affairs of banks.4 Ensure that depending on tax payers money to run business is no more acceptable and possible. If the management cannot function with a bit of honesty and conscience, allow those with honesty and sincerity to quit the institution with incentives. The trust and confidence the essence of banking business is no more in existence and factor this in your Governance Standards and introduce periodical evaluation of improvement in trust and confidence by having your own yardsticks.
    Amit Bansal380 days ago
    Hahahaha.... Totally rubishh figures of Psb loans portal. ONLY A BANK EMPLOYEE WORKING IN BRANCH CAN TELL YOU HOW FORCEFULLY EVERY LOAN IS ROUTED THROUGH PSB PORTAL.
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