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PSBs have done very well, they’re showing clear profits: FM Sitharaman

Banks to go for second credit outreach in all districts of the country from October

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Addressing a press conference on Wednesday in Mumbai, Union Finance Minister Nirmala Sitharaman lauded Public Sector Banks for their performance and said that these banks have now come out of the Prompt Corrective Action (PCA) framework and are now in a position to go to the market and raise money for their capital growth requirements.

The Finance Minister is in Mumbai for the Annual Review Meeting with the Public Sector Banks where she had interactive sessions with bank officials and secretary of the Department of Financial Services to review the performance of the banks.

In the meeting, the banks were requested to have interaction with export promotion agencies and address their requirements in a timely manner. Further, the sunrise sectors were discussed and the banks were asked to assess their financial requirements. She highlighted the advancements in FinTech and encouraged banks to use it and also help the FinTech sector in general as it requires assistance.

She also commented on the changing nature of banking and said, “Today, people are able to raise finances outside the banking system. Now the industry recognises avenues which are outside of the bank and bank themselves have raised revenues from the market.”

The North – Eastern States were given due importance in the meeting as the Finance Minister requested the banks to devise specific plans for the region so that businesses and requirements of the region can be addressed. She also urged the banks to make efforts for greater credit expansion in the Eastern states of the country.

The Finance Minister further lauded the banks for their credit outreach in all the districts of the country between October 2019 and March 2021 and assured that there will be a second credit outreach, possibly from October 2021 in order to keep up the momentum of the stimulus which the Central Government has been providing.