Premium| Listen to this article |
PSBs recorded net profit of ₹31,820 crore in FY 2020-21, highest in last 5 financial years, the state-owned banks' top officials told Finance Minister Nirmala Sitharaman today. She was informed that PSBs are "adequately capitalised" and their CRAR as on September 2021 stood at 14.4%, against regulatory requirement is 11.5% (including CCB).
Sitharaman, while reviewing the PSBs' performance, assessed various steps taken by PSBs in implementing pandemic-related measures initiated by the Centre and Reserve Bank of India (RBI) and readiness to tackle disruptions that may occur due to COVID-19 variant Omicron.
While appreciating the success of ECLGS, the Finance Minister said the collective efforts must strive towards supporting sectors that face interruption due to continued onslaught of COVID-19 pandemic. She said bankers must continue supporting agriculture sector, farmers, retail sector and MSMEs.
Sitharaman said: “Business outlook is progressively improving in spite of the headwinds from global development and Omicron spread." She also underlined that contact intensive sectors may require more support to help them fight against the pandemic.
On the credit demand front, the Finance Minister said the demand is expected to pick up on account of growth in retails segments, improvement in overall macroeconomic prospects and improving financial health of borrowers. During the review meeting, bankers pointed out that PSBs have observed an improvement in the repayment culture in the country.
PSBs' performance
1) PSBs recorded net profit of ₹31,820 crore in FY 2020-21, highest in last 5 financial years.
2) Net profit of ₹31,145 crore for the first half of FY2021-22, almost equal to that of FY 2020-21.
3) PSBs have effected a recovery of ₹5,49,327 crore during the last 7 financial years.
4) PSBs are adequately capitalised and CRAR of PSBs as on September 2021 is 14.4%, against regulatory requirement is 11.5% (including CCB).
5) CET1 of PSBs was at 10.79% as on September 2021 against regulatory requirement is 8%.
6) PSBs recorded year-on-year credit growth of 11.3% in personal loans, 8.3% in agriculture loans and overall credit growth of 3.5%, as on September 2021.
7) Under Credit Outreach Programme launched in October 2021, PSBS have sanctioned an aggregate loan amount of ₹61,268 crore.
8) During the COVID-19 pandemic, PSBs have performed well in various Government schemes like ECLGS (launched in May 2020 to provide relief particularly to the MSME sector amidst the COVID-19 pandemic), LGSCAS and PM SVANidhi.
9) Of the extended limit of Rs. 4.5 lakh crore of ECLGS provided by the government, 64.4% or ₹2.9 lakh crore, sanctioned upto Nov. 2021. Over 13.5 lakh small units survived pandemic due to ECLGS, saved MSME loans worth ₹1.8 lakh crore from slipping into non-performing assets, and saved livelihood for approx. 6 crore families.
Never miss a story! Stay connected and informed with Mint. Download our App Now!!