NEW DELHI, June 23: Finance Minister P Chidambaram’s proposed meeting with chiefs of PSU banks on June 26 to review lenders’ performance has been postponed due to AGMs of some banks on that day, sources said.
“The meeting with the Finance Minister stands postponed as some bankers requested the Finance Ministry for deferment because their annual general meeting (AGM) coinciding with the meeting date,” a senior banker said.
AGMs of Bank of Baroda, Union Bank of India and Punjab & Sind Bank have been scheduled for June 26.
Also, by the end of month, AGMs of other lenders such as Indian Bank, Indian Overseas Bank and UCO Bank will be held on June 28 while that of Punjab National Bank is on June 29.
The Finance Minister is expected to review steps being taken by banks to push stalled infrastructure projects, asset quality and credit inflow to productive sectors.
Bankers said the Finance Minister may also ask banks to reduce their lending rates for pushing up loan growth and economic activity.
Earlier this month Chidambaram had said that although RBI has reduced the policy rates by 1.25 per cent since January 2012, banks have lowered the lending rates by only 0.3 per cent.
“As CPI inflation and deposit rates fall, I would urge commercial banks to translate monetary policy to retail borrowers and firms through lower lending rates,” he had said.
India Inc has been complaining about the reluctance of banks to pass on the benefit of rate cut to corporates and retail borrowers.
As per the agenda note sent out to banks, the Finance Minister will also discuss issues relating to the recovery of bad loans, restructuring of loans and recent RBI guidelines pertaining to it.
Non-performing assets of banks have been on the rise for past several months due to slowdown in the economy.
The gross NPAs of some public sector banks, including State Bank of India and Punjab National Bank have crossed 4 per cent of the total assets at the end of March, 2013.
Gross NPAs of PSU banks have risen from Rs 71,080 crore as on March 2011, to Rs 1.55 lakh crore as on December 2012. (PTI)
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