Business & Investment

PSB said it would be free to rent out to meet the demands of the festival.

The Treasury believes that various sectors of the economy, including exports and sunrise, need credit support and banks need to satisfy this appetite.

The Treasury will soon launch a national lending outreach program for state-owned banks, taking advantage of the potential increase in credit demand as the economy since Diwali is on a “sustainable recovery” path. I advised you to do it. Sources told FE.

Banks are required to set goals for loans approved during district-by-district outreach programs and work with fintech and non-bank lenders to strengthen payments to small borrowers.

The move is to launch an outreach program for state-owned lenders in August, fearing that bankers will become increasingly risk-averse as the government seeks to stimulate economic growth through sustained credit boosts. It follows the instructions of Nito Finance Minister Nirmalashi Salaman. The minister said that between October 2019 and March 2021, lenders provided loans as high as Rs. 4.94 through similar outreach programs in various districts.

Together, they remained silent for months, but the flow of non-food loans witnessed a recent rise. Credit growth in non-food banks improved from 5.5% in the previous year to 6.7% in August. Industrial lending increased by 0.4% to 2.3%, but remains at a low level. That is despite the fact that the daily surplus liquidity of the banking system averages Rs 60,000 in July and August. Care evaluation..

The Treasury has also called on the Ministry of Agriculture, Labor, Housing, Health and Rural Development to help increase the number of insurance and pension recipients.

The Treasury believes that various sectors of the economy, including exports and sunrise, need credit support and banks need to satisfy this appetite. State banks are required to consult with exporters and various associations to support lending requirements. It is also expected to provide a foothold for the district-by-product export theme discussed by the Prime Minister.

According to CARE Ratings, the weekly average (net) liquidity surplus of the banking system, which has been widespread since June 2019, exceeded Rs 75,000 by October 5, from Rs 45,000 at the end of June 2021. .. “The increase in the surplus was primarily due to sluggish credit demand and continued declines in credit spending from banks due to alertness to bank lending,” a report last week said.

Similarly, public sector banks (PSBs) have been instructed by the Minister to develop concrete plans to boost credit flow in northeastern states. Some eastern states, such as Orissa, Bihar, Jharkhand, and even West Bengal, make up a significant portion of PSB’s CASA deposits, but credit expansion for business development there remains modest. is. The minister said this needed to be addressed.

The state-owned bank is around the corner, with a profit of 31,820 rupees in 2009, the highest in five years. Net non-performing loans of state-owned banks fell from 7.97% three years ago to 3.1% in FY2009, and the equity ratio (CRAR) was about 14% against the 10.875% requirement. The Treasury believes that improved finance has improved its ability to lend appropriately.

Already, the government introduced the Emergency Credit Line Guarantee Scheme (ECLGS) last year to facilitate credit flows to Covid-hit companies and professionals. As of September 24, the loan approved under the various avatars of the scheme (ECLGS 1.0, 2.0, and 3.0) was Rs 2.86.

Similarly, the Rs 7,500 credit guarantee system announced on June 28 will be fully utilized within 75 days to promote concessional lending to small borrowers estimated at Rs 250,000 through microfinance institutions. I did.

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PSB said it would be free to rent out to meet the demands of the festival.

https://www.financialexpress.com/industry/banking-finance/meet-festive-demand-lend-liberally-psbs-told/2352775/ PSB said it would be free to rent out to meet the demands of the festival.

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