Mumbai: Union Finance Minister Nirmala Sitharaman on Wednesday met the heads of public sector banks (PSBs) to review the financial performance of the lenders and progress made by them in supporting the pandemic-hit economy. Soon after the meeting, Sitharaman addressed a press conference and said there will be credit outreach efforts by banks in every district of this country to keep momentum of stimulus.
She also said that the PSBs have been requested to have interactions with exporters’ bodies to understand their requirements.
“Banks have been asked to create state-wise plans for north-east focusing on logistics, exports from the area,” Sitharaman added.
I've requested the public sector banks to have interaction with Export Promotion Agencies at various regional levels as well as with chambers of commerce & industry so that requirements of exporters can be timely well-addressed: Finance Minister Nirmala Sitharaman, in Mumbai pic.twitter.com/iC8GFqQTyZ
— ANI (@ANI) August 25, 2021
Saying that the deposits piling up in states of eastern India, she said the credit needs to be expanded as well. She further stated that she has urged banks to extend assistance to the fintech sector.
“Collectively, PSBs have done well and have come out of Prompt Corrective Action despite service extended during pandemic,” she said.
On the other hand, the DFS secretary said that the PSBs now raising their own resources after gaining investor confidence, over Rs 12,000 cr of fund raising in process.
Sitharaman also said that banks will go about to exhibit loan offerings in every district of the country in a bid to enhance the credit demand.
A similar outreach programme was undertaken by the public sector banks in which some private sector banks also participated to boost credit offtake in the face of an economic slowdown.
“With changing times, now industries have option of raising funds even from outside the banking sector. Banks themselves are raising funds through various avenues. These new aspects need to be studied to target credit where it is needed,” she said.
Sitharaman said that during her interaction with the chiefs of public sector banks it was highlighted that banks can play a crucial role by hand-holding industries from a particular sector to enable them to become an exporter and thereby play an important role in assisting One district one Product scheme suggested by the Prime Minister.
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