In the first nine months of the first credit outreach programme (October 1 to 9), Rs 81,781 crore of credit was disbursed through loan melas, Finance Minister Nirmala Sitharaman said on Monday. There is no shortage of liquidity and sufficient demand for credit in the banking system, she also said. In the meeting held with the PSU bank chiefs today, finance minister assessed the progress of first phase of outreach programme held across 226 districts across the country. The second phase will be held in 209 districts between October 21 and October 25. Even as the big companies owe nearly Rs 40,000 crore to MSMEs, the government has asked these borrowers to expedite the process of repayment, the government said. It comes as Finance Minister Nirmala Sitharaman earlier today held a meeting with Chairman and MDs of public sector banks (PSBs) and reviewed credit growth and measures to boost the economy.
The second meeting that Finance Minister held in less than a month with PSU top bosses, also included Secretary DFS Rajeev Kumar, Secretary DEA Atanu Chakraborty, Secretary Revenue Ajay Bhushan Pandey, Secretary Expenditure G C Murmu and Chief Economic Advisor Krishnamurthy Subramanian.
Other than recapitalisation, the government has already announced various measures to boost the slowing economy including the amalgamation of the big banks: 1) merger of Punjab National Bank (PNB), Oriental Bank of Commerce (OBC) and United Bank to form the second-largest public sector bank in the country, after the State Bank of India (SBI); 2) merger of Canara Bank and Syndicate Bank to create India's fourth-largest PSU bank; 3) merger of Union Bank of India with Andhra Bank and Corporation Bank to build India's fifth-largest lender, and; 4) merger of Indian Bank with Allahabad Bank to make India's seventh-largest PSU bank.