PM Meets Financial Institutions Chiefs Today
Prime Minister Narendra Modi will be chairing a high-level meeting with heads of various banks and non-bank financial institutions (NBFCs) today to take stock of the economic situation. Senior executives, CEOs of State Bank of India, Bank of Baroda, Union Bank of India, Punjab National Bank, HDFC Limited, Bajaj Finance, HDFC Bank, ICICI Bank are expected to participate in the meeting.
The meeting may also see participation from DFS or Department of Financial Services Secretary, Ministry of Corporate Affairs Secretary among others. Officials from Reserve Bank of India, however, are not expected to participate in the meeting
The topics on agenda include credit products & efficient models for delivery, financial empowerment through technology, prudential practices for stability and sustainability of financial sector.
The Prime Minister is expected to discuss macroeconomic affairs, including credit flow to weaker sectors with financial institutions in the meeting. Progress of various schemes announced under the Aatmanirbhar Bharat Abhiyan package is likely to be discussed, including the Rs 3 lakh crores Emergency Credit Line Guarantee Scheme for MSMEs, liquidity measures for non-bank lenders, as per the banking executives CNBC-TV18 spoke to.
The meeting assumes significance coming at a time when credit growth is languishing amid the economic slowdown that is caused by the coronavirus-induced lockdown, and bad loans are expected to pile up with various businesses facing stress.
RBI in its latest Financial Stability Report has projected that gross non-performing assets may rise from 8.5 percent to 12.5-14.7 percent by March 2021 depending on the severity of stress in the economy.