November 4, 2017 11:13 AM

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Finance Ministry to hold meeting with top management of public sector banks

The finance ministry will hold a meeting with top management of public sector banks on November 11 and 12 to discuss various issues, including bad loans and recapitalisation. <br/><br/>Finance Ministry sources said in New Delhi that the meeting will discuss on increased lending to Ministry of Micro, Small & Medium Enterprises (MSME), recovery on non-performing assets (NPAs), credit growth, capacity building among others.<br/><br/>The meeting assumes significance in the light of the recent government announcement of fund infusion in the public sector banks over a period of two years. <br/><br/>Last month, the government had announced a 2.11 lakh crore rupees bank recapitalisation plan, of which 76,000 crore rupees will come through budgetary support and bank stake sales, and 1.35 lakh crore rupees as bonds.<br/>While announcing the unprecedented 2.11 lakh crore rupees capital infusion roadmap for the public sector banks last week, Finance Minister Arun Jaitley had said that this will be accompanied by series of banking reforms over next few months.<br/>Banks are facing mounting NPAs to the tune of 8 lakh crore rupees. The bank NPAs are skirting the double-digit mark at present and expected to grow further.<br/><br/>

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