Amid concerns over moderation in economic growth and rising bad loans, finance minister Pranab Mukherjee will meet on Tuesday with heads of public sector banks to discuss credit flow to productive sectors and review their performance in the last fiscal.
The meeting will take stock of financial performance of the banks in 2011-12 fiscal, sources said, adding it would also dwell upon credit flow to productive sectors.
Besides, focus of the meeting would also be on providing banking facilities to unbanked areas. The finance ministry would seek information about the progress on financial inclusion front carried out by individual banks.
The finance ministry will deliberate on non-performing assets [NPAs], agriculture loan, credit to infrastructure sector and matters related to human resources in public sector banks, they said.
The finance minister has fixed the target for agricultural credit at Rs 5,75,000 crore in 2012-13. This represents an increase of Rs 1 lakh crore over the target for the last fiscal.
Issues on lending to distressed sectors, such as real estate, power, aviation and telecom may also be flagged off during the meeting.
Expressing concerns over rising bad loans, Mukherjee last month asked the banks to take steps to manage their NPAs which has grown on account of economic downturn.
Gross NPAs of public sector banks stood at 3.3 per cent in 2011-12. Heads of public sector financial institutions like Nabard, Sidbi, NHB, IIFCL and Exim Bank would also attend the meeting.
'NOT ALL MONEY IS BLACK MONEY'
Finance minister Pranab Mukherjee on Sunday said all the money kept by Indians abroad is not black money and noted that India has signed treaties with 37 countries to know the details of such illegal wealth.
‘Not all money kept abroad is black money. It might have been deposited by businessmen or business houses. The process will take time to know the exact amount,’ he said. His comments come amidst demands by yoga guru Ramdev asking the government to take steps to bring bank black money stashed abroad.
The government last month had proposed a multi-faceted strategy to unearth black money through fast-track courts and deterrent punishment but had ruled out any tax any immunity schemes.
The white paper on black money tabled by Mukherjee favoured a strategic mix of four pillars that will include incentives for voluntary compliance, reforms in vulnerable sectors of economy, creating effective and supportive measures.
The meeting will take stock of financial performance of the banks in 2011-12 fiscal, sources said, adding it would also dwell upon credit flow to productive sectors.
Besides, focus of the meeting would also be on providing banking facilities to unbanked areas. The finance ministry would seek information about the progress on financial inclusion front carried out by individual banks.
The finance ministry will deliberate on non-performing assets [NPAs], agriculture loan, credit to infrastructure sector and matters related to human resources in public sector banks, they said.
The finance minister has fixed the target for agricultural credit at Rs 5,75,000 crore in 2012-13. This represents an increase of Rs 1 lakh crore over the target for the last fiscal.
Issues on lending to distressed sectors, such as real estate, power, aviation and telecom may also be flagged off during the meeting.
Expressing concerns over rising bad loans, Mukherjee last month asked the banks to take steps to manage their NPAs which has grown on account of economic downturn.
Gross NPAs of public sector banks stood at 3.3 per cent in 2011-12. Heads of public sector financial institutions like Nabard, Sidbi, NHB, IIFCL and Exim Bank would also attend the meeting.
'NOT ALL MONEY IS BLACK MONEY'
Finance minister Pranab Mukherjee on Sunday said all the money kept by Indians abroad is not black money and noted that India has signed treaties with 37 countries to know the details of such illegal wealth.
‘Not all money kept abroad is black money. It might have been deposited by businessmen or business houses. The process will take time to know the exact amount,’ he said. His comments come amidst demands by yoga guru Ramdev asking the government to take steps to bring bank black money stashed abroad.
The government last month had proposed a multi-faceted strategy to unearth black money through fast-track courts and deterrent punishment but had ruled out any tax any immunity schemes.
The white paper on black money tabled by Mukherjee favoured a strategic mix of four pillars that will include incentives for voluntary compliance, reforms in vulnerable sectors of economy, creating effective and supportive measures.