Public sector banks to turn more profitable: Piyush Goyal after review meet

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The Public Sector Banks (PSBs) will be more profitable and proactive in the coming days, said Finance Minister Piyush Goyal, after holding a review meeting with the lenders on Monday, days before the interim budget.

The heads of PSB discussed the problems they face in taking the cases of bad loans to the National Court of Corporate Law (NCLT) along with ways to boost credit, particularly for micro, small and medium enterprises ( MSMEs) and improve the recovery of bad loans. “The sum and content of today’s meeting is that we will see a more dynamic, proactive and profitable banking sector in the coming days,” said Goyal. “We would like them to look for ways to improve the provision of services to farmers. We would like them to be more proactive in promoting retail businesses. ”

The governor of the Reserve Bank of India (RBI), Shaktikanta Das, addressed the bosses earlier that day and assessed the liquidity situation, particularly in non-bank financial companies, said a PSB executive.

The sources said that the governor of RBI asked the banks to make provisions for the uncollectible loans. A note from the ministry of finance said Das noted the need to strengthen several aspects of banking, including underwriting standards, capacity building, the use of technology and governance.