Bank's NPA reaches record lowest level, Finance Minister's instructions - should not lose sight of debt
In the quarter ended March 2023, the level of net NPA has come down to 1.24 percent against the total advances. This level used to be more than 10 percent only a few years back. Finance Minister Nirmala Sitharaman has expressed happiness but has also instructed the heads of these banks that their watchful eye should not be lost on bad loans.
The biggest problem of public sector banks i.e. bad loans (NPA) problem has come under control to a great extent. In the quarter ending March 2023, the level of net NPA has come down to 1.24 percent against total advances. This level used to be more than 10 percent only a few years back. Finance Minister Nirmala Sitharaman has expressed happiness over this but has also instructed the heads of these banks that they should not lose their vigilance regarding bad loans.
Banks should continuously monitor the position of NPAs in a clear and transparent manner and their system of timely identification in a correct manner should continue. In a meeting with the heads of public sector banks on Thursday, the Finance Minister reviewed their work in detail and also gave them some suggestions to improve their performance. In the meeting, the Finance Minister specifically instructed the banks to disburse adequate loans to rural, agricultural, and social sectors.
It should be ensured that all targets for priority sector lending are achieved. He suggested laying special emphasis on providing financial facilities to street vendors. For this, a banking program named PMSvanidhi is also being run. The Finance Minister was told that 33 lakh people have benefited from this program.
The Finance Minister said that a campaign should be started to give these people the benefit of digital payments. It was then decided that a drive would be launched to increase the coverage of PMSVANidhi and Dr. BK Karad, Minister of State for Finance would monitor it. The Minister of State for Finance will run a campaign for this in collaboration with the urban bodies.
The Finance Minister has particularly emphasized the condition of Regional Rural Banks (RRBs). Banks have been asked to take steps for technology upgradation in their respective RRBs within a stipulated period. It is very important to make RRB more efficient and effective. The Finance Minister has called a meeting to review the status of RRBs in Agartala from July 21. It will include representatives of RRBIs and their promoter banks located in every part of the country.
