FM asks public sector banks to step up lending to MSME, agriculture & housing sectors

Finance Minister Piyush Goyal has exhorted state-run banks to step up lending to micro, small and medium enterprises, agriculture and housing sectors. He was talking to media after his first meeting with the heads of Public Sector Banks (PSBs) yesterday. He said the Insolvency and Bankruptcy Code (IBC) has helped the PSBs recover over Rs 1 lakh crore in the three quarters of the current fiscal.

Talking about the review meeting, Goyal said banks under Prompt Corrective Action (PCA) framework were advised to maintain the trend of improvement in performance, with a view to bringing them out of the PCA framework at the earliest.

Citing a number of positives, the finance minister highlighted the need for each and every PSB to ensure that recent gains are sustained and better service delivered to all stakeholders.
He said, Banks also committed to step up their efforts for financing under Pradhan Mantri Awas Yojana which is aimed at securing Housing for All by 2022. Earlier, RBI Governor Das highlighted importance of PSBs for the economy at all times and especially at the present juncture in helping meet broader economic goals.