Finance ministry to talk key issues with public sector bank brass at 'vichar manthan'
PTI|
Nov 03, 2017, 11.54 PM IST
NEW DELHI: The finance ministry will hold a conclave of the top brass of state-run lenders to look into issues in areas such as credit growth and bad loans.
Tentatively called ‘Vichar Manthan’, the programme will see the formation of seven groups, each headed by the managing director of a public sector bank, to deliberate the issues. The meeting is expected to take place next week. “This is going to be on the lines of ‘Gyan Sangam’ where pertinent issues in the banking sector will be discussed. This will also include discussion around recovery and HR practices,” said a finance ministry official, who did not wish to be named.
Last month, the government announced an over Rs 2.1 lakh crore bank recapitalisation plan, of which Rs 76,000 crore would come through budgetary support and bank stake sales, and Rs 1.35 lakh crore through bond sales.
While making the announcement, finance minister Arun Jaitley had said the recapitalisation process would be followed by a series of reforms to make state-run banks more accountable. “There are a series of measures which have been announced, including support to MSMEs in order to push growth and create more jobs — all these will be a part of the discussion,” said the finance ministry official.
In 2014, the government organised a similar event for banks and financial institutions, called ‘Gyan Sangam’. Its second edition was held in March 2016, after which the government said it kick-started the third phase of reforms in state-run banks, which would look into all aspects including consolidation.
Earlier this week, the government also announced the structure of an alternative mechanism, headed by the finance minister, which among other things may also direct banks to examine proposals for amalgamation.
The final schemes formulated will be approved by the central government and presented in both houses of Parliament, the finance ministry had noted in a statement.
Tentatively called ‘Vichar Manthan’, the programme will see the formation of seven groups, each headed by the managing director of a public sector bank, to deliberate the issues. The meeting is expected to take place next week. “This is going to be on the lines of ‘Gyan Sangam’ where pertinent issues in the banking sector will be discussed. This will also include discussion around recovery and HR practices,” said a finance ministry official, who did not wish to be named.
Last month, the government announced an over Rs 2.1 lakh crore bank recapitalisation plan, of which Rs 76,000 crore would come through budgetary support and bank stake sales, and Rs 1.35 lakh crore through bond sales.
While making the announcement, finance minister Arun Jaitley had said the recapitalisation process would be followed by a series of reforms to make state-run banks more accountable. “There are a series of measures which have been announced, including support to MSMEs in order to push growth and create more jobs — all these will be a part of the discussion,” said the finance ministry official.
In 2014, the government organised a similar event for banks and financial institutions, called ‘Gyan Sangam’. Its second edition was held in March 2016, after which the government said it kick-started the third phase of reforms in state-run banks, which would look into all aspects including consolidation.
Earlier this week, the government also announced the structure of an alternative mechanism, headed by the finance minister, which among other things may also direct banks to examine proposals for amalgamation.
The final schemes formulated will be approved by the central government and presented in both houses of Parliament, the finance ministry had noted in a statement.
