FM to meet chiefs of PSU banks, insurance companies on May 12-13

In his last meeting as Finance Minister in UPA II government, P Chidamabram will

RELATED ARTICLES

hold discussions on various issues with heads of public sector insurance companies and state-owned banks on Monday and Tuesday, respectively.

The meeting of Finance Minister with chief executive officers of life and non-life insurance companies has been scheduled on May 12, official sources said.

The Minister will review performance of the public sector insurers, they said.

A day after, the Minister will meet chiefs of public sector banks to impress upon them to focus on the recovery of bad loans, sources added.

PSU banks have recovered Rs 18,933 crore of bad loans during the nine months through December 2013.

Bad loans of PSU banks rose 28.5 per cent to Rs 1.83 lakh crore in March 2013 over the preceding September.

The non-performing assets (NPA), or bad loans, of the public sector banks have seen an uptrend since financial meltdown in 2008. During the current financial year, most of the public sector banks have reported rise in their NPA quarter after quarter.

The gross NPA of public sector banks rose to Rs 2.03 lakh crore at the end of September from Rs 1.55 lakh crore on March 31, 2013.

The gross NPA of banks, including those in the private sector, rose by 28.5 per cent from Rs 1.83 lakh crore in March 2013 to Rs 2.36 lakh crore in September last year.

Recently, OECD in its report said rising bad loans of banks threaten to choke the economic recovery in India.

"However, fiscal consolidation and supply bottlenecks, coupled with still high non-performing loans and corporate leverage, will weigh on the recovery," it said.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Copy the characters (respecting upper/lower case) from the image.

EDITORIAL OF THE DAY

  • Time and tide are ripe for megaplans such as Sagarmala

    To say that India’s infrastructure is in urgent need of upgrade would be to state the obvious.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Urs Schoettli

China looks to India for balance

Almost a third of the total world population lives in ...

Zehra Naqvi

Love and its stories

People must have bread. They can live without stories. No, Hameeda, ...

Dharmendra Khandal

Tiger in urban landscape

Ranthambhore is in a no-win situation. Just a few days ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture