Nirmala Sitharaman to meet CEOs of PSBs to discuss credit offtake

Published : Oct 10, 2019, 1:17 PM IST

According to the latest RBI data, the flow of funds from banks and non-banks to the commercial sector has been Rs 90,995 crore in 2019-20 so far (April to mid-September) as against Rs 7,36,087 crore in the same period last year.

Nirmala Sitharaman to meet CEOs of PSBs to discuss credit offtake

New Delhi: With Overall financial flows to the commercial sector declining sharply by 88 per cent during the first six months of the current financial year amid the slowdown in the economy, Finance Minister Nirmala Sitharaman has called for a meeting with CEOs of public sector banks (PSBs) next week to consult on ways to boost credit offtake, officials said on Wednesday.

According to the latest RBI data, the flow of funds from banks and non-banks to the commercial sector has been Rs 90,995 crore in 2019-20 so far (April to mid-September) as against Rs 7,36,087 crore in the same period last year. The commercial sector does not include farming, manufacturing and transportation.

With the financial sector going through a turbulent phase, there was a reverse flow of Rs 1,25,600 crore from the commercial sector to non-deposit-taking NBFCs and deposit-taking NBFCs as against a flow of Rs 41,200 crore in the same period last year.

The meeting, scheduled to be held on October 14, will review fund flow to stressed NBFC and MSME (micro, small and medium enterprises) sectors.

Banks are expected to present a report card on partial credit guarantee scheme, their number of tie-ups and fund raising from the market to enhance their capital base.

The Centre in August issued guidelines on operationalising Rs 1 lakh crore partial guarantee scheme under which PSBs can purchase high-rated pooled assets of financially sound non-banking finance companies (NBFCs).

The meeting will also review the first phase of the outreach programme held across 250 districts across the country. This will be the second meeting of Sitharaman with CEOs of PSU banks in less than a month.

The first phase of 'Loan Mela' for providing credit to agriculture, vehicle, home, MSMEs, education and personal categories ended on October 7. The second phase will be held in 150 districts between October 21 and October 25, just before Diwali.

The meeting, scheduled to be held on October 14, will review fund flow to stressed NBFC and MSME (micro, small and medium enterprises) sectors.

Banks are expected to present a report card on partial credit guarantee scheme, their number of tie-ups and fund raising from the market to enhance their capital base.

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BIZ-STOCKS-OPEN
Sensex drops over 150 pts, Nifty slips below 11,300
Mumbai, Oct 10 (PTI) Equity benchmark BSE Sensex dropped over 150 points on Thursday tracking losses in banking stocks amid unabated foreign fund outflow.
The 30-share index was trading 170.98 points, or 0.45 per cent, lower at 38,006.97 at 0930 hours. Similarly, the broader NSE Nifty fell 48.60 points, or 0.43 per cent, to 11,264.70.
Top losers in the Sensex pack during early session included SBI, ICICI Bank, Tata Motors, Yes Bank, Tata Steel, Axis Bank, HDFC twins, M&M, Bajaj Finance and IndusInd Bank, shedding up to 2.66 per cent.
On the other hand, Bharti Airtel, RIL, Infosys, TCS and Sun Pharma advanced up to 5 per cent.
In the previous session, the BSE barometer surged 645.97 points or 1.72 per cent to end at 38,177.95, while the Nifty zoomed 186.90 points or 1.68 per cent to 11,313.30.
Foreign institutional investors (FIIs) remained net sellers in the capital market, pulling out Rs 485.24 crore on Wednesday, while domestic institutional investors bought shares worth Rs 956.26 crore, data available with stock exchange showed.
Elsewhere in Asia, bourses in Shanghai, Hong Kong and Tokyo were trading on a positive note in early trade amid hopes of a trade deal between the US and China as they hold the next round of trade negotiations on October 10. Exchanges in Seoul were trading in the red.
Stocks on Wall Street ended on a positive note on Wednesday.
The rupee, meanwhile, appreciated 5 paise against its previous close to trade at 71.02 in early session.
Brent futures, the global oil benchmark, fell 0.17 per cent to USD 58.22 per barrel. PTI
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Nirmala Sitharaman to meet CEOs of PSBs to discuss credit offtake

According to the latest RBI data, the flow of funds from banks and non-banks to the commercial sector has been Rs 90,995 crore in 2019-20 so far (April to mid-September) as against Rs 7,36,087 crore in the same period last year.

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