Finance Minister Arun Jaitley today asked the banking and financial institutions for a joint action to steer the economy in the right direction. While holding Pre-Budget Consultations with the representatives of Banks and Financial Institutions in New Delhi Mr Jaitley said, slow down of economic growth coupled with high inflationary pressure poses a challenge to the economic environment.

During the meeting, various suggestions including recapitalization of public sector banks, dilution of government ownership in public sector banks up to 51 per cent and setting- up of National Asset Management Company for dealing with NPAs of the banks were made.

Other suggestions included continuation of interest subvention scheme for agriculture sector, raising of tax benefit limit for health insurance and tax exemption limit under the Income Tax Act. A relook at various provisions of New Companies Bill was also placed before the Minister. Mr Jaitley assured that the issues raised and suggestions made by representatives of Banks and Financial Institutions will be looked into.