A recent press report said that the Finance Minister, Mr. Pranab Mukherjee, will undertake a zone-wise performance review of various public sector banks (PSBs) due to the slowdown in credit off take and the rising trend of loans going bad.
Reports said that the process is to begin on September 17, with Mr. Mukherjee having planned to hold a meeting in Mumbai of Chief Ministers of West Zone States along with the chief executives of all PSBs.
Reports said that there would be a review of State-wise flow of credit in areas such as agriculture, small and medium enterprises, housing loans, education loans besides credit to weaker sections and credit to minorities.
Reports added saying that the Finance Minister was to investigate into the aspect of the rise in the non-performing assets (NPAs) in the banking system. There will also be a review of the implementation of centrally sponsored scheme in each State and the steps taken by banks to improve financial inclusion.
A review on the performance of regional rural banks (RRBs) and the implementation of Aam Admi Bima Yojana is also likely to come up in the meeting.