Arun Jaitley to discuss banking reforms with Public Sector Banks on Tuesday


New Delhi: Finance Minister Arun Jaitley will hold a meeting with Public Sector Banks on Tuesday. The meeting chaired by the Union Finance Minister will hold discussions on the review of recovery, bank performance and reforms, financial inclusion, digitalisation, housing loans, MSME lending and new initiatives.

Officials from Debt Recovery Tribunal, Bank Board Bureau, Ministry of MSME, Ministry of Electronics and Information Technology, Ministry of Rural Development, Ministry of Housing and Urban Development will also take part in the meeting.

“Finance Minister Arun Jaitley will chair the Annual Review Meeting of the CEOs of PSBs scheduled to be held on Tuesday in New Delhi,” the Finance Ministry said in a tweet.

The meeting comes in the backdrop of huge losses reported by many of the PSBs in the previous fiscal, various allegations of frauds and scams, identification of higher NPAs, credit-related issues and government-induced consolidation.

Last week, the government proposed the merger of three state-run banks – Dena Bank, Vijaya Bank and the Bank of Baroda – into an amalgamated entity through Alternative Mechanism, set up to fast-track consolidation to create strong lenders.

“The meeting is likely to discuss the challenges facing the banks like NPAs and credit growth. Steps taken by banks to recover the bad loans will also be reviewed,” said an official adding that the meeting with banks will happen at Vigyan Bhawan here.

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