INSUBCONTINENT EXCLUSIVE:
Piyush Goyal asked banks to take advantage of the MSME restructuring scheme to support viable MSME units.Finance Minister Piyush Goyal on
Monday reviewed the performance of public sector banks (PSBs) during which they committed themselves to stepping up lending to micro, small
and medium enterprises (MSMEs) while also significantly increasing the level of domestic credit growth
The PSBs also agreed to step up their efforts to finance the Pradhan Mantri Awas Yojana which is aimed at securing housing for all by
2022.At the meeting, the Finance Minister took note of the reduction in non-performing assets (NPAs) of banks under Prompt Corrective Action
(PCA) framework and advised them to maintain the trend of improvement in performance with a view to bringing them out of the PCA framework
to all stakeholders.Earlier in the day, RBI Governor Shaktikanta Das, who attended the first half of the meeting, flagged the need for
flagged the need for PSBs to extend credit while observing prudential norms but without excessive conservatism
He asked banks to take advantage of the MSME restructuring scheme to support viable MSME units.The government said the review was against
the backdrop of visible signs of strengthening of the financial situation of PSBs as a result of government's approach of recognition,
resolution, recapitalisation and reforms, which has positioned PSBs to step up their support to meet the lending needs of a growing
recovery of over Rs 1 lakh crore in the first three quarters of the current financial year -- since clean-up began in 2015, and
comprehensive reforms for better underwriting of loans, PSBs committed to significantly step up the level of domestic credit growth from 9.1
per cent year-on-year at the end the second quarter of the current financial year," an official statement said.During the meeting, the banks
committed to further improve on the robust growth in credit and reducing trend in turnaround time for loan applications through growing use
of fintech and technology "as evidenced by the success of the 59 minutes loan portal, through which over 1.25 lakh MSMEs have been accorded
Artificial Intelligence algorithms for better, faster and hassle-free credit decisions and monitoring of accounts," it added.The government
also asked the banks to expeditiously complete the opening of branches and banking outlets in Left-wing extremism affected areas
The banks were also asked to ensure that the benefits extended under Pradhan Mantri Jan Dhan Yojana -- by making overdraft facility and
Dhan-Aadhaar-Mobile (JAM) to provide better access to financial inclusion products and services to accelerate the realisation of a
