NPAs exceeding Rs100 crore will be reviewed by FM Nirmala Sitharaman on June 20

17 Jun 2022 , 03:31 PM

On June 20, Finance Minister Nirmala Sitharaman will meet with state-owned institutions to assess problematic loans worth Rs100 crore or more. A senior finance ministry official confirmed the news, saying that the evaluation of asset quality and recovery is part of the state-run lender’s performance review.

“In addition to the performance evaluation, the government will assess credit growth, bank capital raising strategies, and business performance,” the person added.

Banks will also exchange information on success in financial inclusion and associated government programs, according to another CEO. “Progress in projects launched under Aatmanirbhar Bharat will also be given, as well as data on the saturation campaign in Kisan Credit Card or KCC,” he said.

All 12 public sector banks (PSBs) declared a profit in FY22, nearly doubling the previous fiscal’s net profit of Rs31,820 crore. In the current fiscal year, the government has not set aside any funds for bank capitalization.

In April, banks were requested to create a three-year strategy to enhance their performance and competitiveness as part of PSB Manthan 2022. Banks will concentrate on both geographical and corporate sector-specific possibilities, such as green energy.

Finance Minister Nirmala Sitharaman inspected the progress in establishing the National Asset Reconstruction Business Ltd (NARCL), a special purpose asset reconstruction company that would take over big value NPA accounts (above Rs500 crore) from banks earlier this month.

“The first batch of accounts is projected to be transferred in July 2022, as account-by-account due diligence nears completion. It is planned that the remaining accounts be taken over in the third quarter of the current fiscal year “In a statement, the finance ministry stated.