It has been reported that Finance Minister Mr. Chidambaram will review the financial performance of Public sector banks today. Because of the rising issue of bad loans Finance minister has decided to look at the performances of the banks.
A bank statement reported that the review will cover all the aspects credit growth, agricultural credit, MSME credit, housing loan, education loan etc. The finance minister will look at the performance of the banks with respect to the steps taken by them to reduce their non-performing assets (NPAs) and increase their recovery. Most of the banks have reported for the increase in the Bad loans. Gross NPAs of banks, including the private sector, increased by 28.5 per cent from Rs. 1.83 lakh crore in March 2013 to Rs. 2.36 lakh crore in September.
In this review meeting Mr. Chidambaram will also review on several other important aspects of the banks like capital adequacy, the progess made by the banks with regard to the stalled projects . Through this meting the FinMin will review overall financial performances of the bank so that the measures can be concluded to control the rising NPAs of the banks. This will be the second meeting this year by the Finance Minister with the CEOs of the PSBs/FIs.