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Rediff.com  » Business » FM to meet govt bank chiefs on Nov 15

FM to meet govt bank chiefs on Nov 15

November 02, 2012 09:32 IST

P ChidambaramFinance Minister P Chidambaram will review the second-quarter performance of state-owned banks on November 15.

His meeting with the bank chiefs comes against the backdrop of growing stress on banks' balance-sheets and slowdown in credit flow to priority sectors.

Steps to increase credit flow to micro, small and medium enterprises and farm sector would also figure in the meeting, said senior public sector bank executives.

The Reserve Bank of India has also flagged issue of credit to SMEs. The central bank will also meet bank heads at the end of this month to review status.

Among the large public sector banks that have announced results for the second quarter so far, only Bank of Baroda has reported a consistent performance, withering stressful times.

Three others -- Bank of India, Punjab National Bank and IDBI Bank -- came out with numbers below market expectations.

While commercial banks reported a dip in credit growth at 15.9 per cent at end-September, compared with 19.5 per cent a year ago, the drop has been particularly sharp for state-owned banks, which have market share of over 70 per cent.

Among the large public sector banks that have announced results for the second quarter so far, only Bank of Baroda has reported a consistent performance, withering stressful times.

Three others -- Bank of India, Punjab National Bank and IDBI Bank — came out with numbers below market expectations.

While commercial banks reported a dip in credit growth at 15.9 per cent at end-September, compared with 19.5 per cent a year ago, the drop has been particularly sharp for state-owned banks, which have market share of over 70 per cent.

Image: P Chidambaram
 

Abhijit Lele in Mumbai
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