Push credit growth, Finance ministry tells banks

Government likely to introduce 2 key financial sector bills in Winter Session

The finance ministry held a review meeting with state-run lenders Tuesday and directed them to look at pushing credit growth. The meeting, chaired by financial services secretary Sanjay Malhotra, also took stock of the lenders’ plans to reduce their non-performing assets.

“There was also a review of banks’ performance on the metrics decided under Enhanced Access and Service Excellence or EaseNext reforms,” a senior executive aware of the development said on condition of anonymity. “Under EaseNext lenders will focus on digital lending, and integrated and inclusive banking, with emphasis on supporting small businesses and agriculture.”

The banks also updated the ministry on their positions on the accounts being transferred to bad bank or National Asset Reconstruction Company of India Ltd, said the executive. adding that the government is keen that the entity kick-start its operations.

The banks gave an outline of the proposed three-year roadmap for their business strategy and steps taken for more collaboration among themselves, said the executive, adding that the government is keen that the large banks share their best practices with smaller lenders and guide them in areas where they need more expertise.
Source: Economic Times

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