Although the government has been trying to increase the flow of credit to the industry through the help of fiscal stimulus packages yet the flow has not been sufficient. The government has been easing rates and providing packages to increase the flow of funds from the PSU banks to the various sectors.
Cabinet Secretary K M Chandrasekhar said that he will discuss this issue with the senior officials of Reserve Bank of India and chiefs of the public sector banks.
Various representatives from the industry said that despite of the RBI's move to push the credit flow from the industry, PSU banks have been hesitant to lend them. The manufacturers of the export items have complaint to the government about the same. "There have been complaints from exporters...we will review whether banks are lending or not," said senior official.
Federation of Indian Export Organisations President A Sakthivel said, "We have already written to the finance and commerce ministries regarding this...banks should have a proactive approach to help the exporters to reach new customers."
Even though the RBI has been announcing cut in its policy rates but still the PSU banks have not increased the lines of credit to the industry. Although the banks have reduced their interest rates on home and car loans yet they have not gone high with the disbursement.
The meeting that the Cabinet Secretary is going to call will take place in this week and is expected to be attended by Commerce Secretary G K Pillai, Finance Secretary Arun Ramanathan and RBI Deputy Governor Usha Thorat.