Finance Minister urges Public Sector Banks to ramp up deposit mobilization efforts
In a recent performance review meeting with heads of major public sector banks, Finance Minister Nirmala Sitharaman emphasized the need for these institutions to focus on bolstering deposit collection. According to sources present in the discussions, the Minister noted that garnering more deposits would aid the sustainable funding of credit growth going forward.
Top officials were instructed to explore creative deposit mobilization initiatives like targeted outreach campaigns tailored for rural and semi-urban client segments. During the interactions, appreciation was conveyed for the solid financial results posted by public sector lenders in the last fiscal year. Key metrics like net NPA ratio, capital ratios and profitability saw considerable improvements over prior periods.
The Finance Minister also pushed for the prompt rollout of a new MSME credit risk profiling system leveraging digital usage patterns and cash flow data points. This revamped approach aims to boost viable small business loan sanction rates outside of conventional asset-based underwriting. Strengthening credit delivery to eligible beneficiaries under government housing and job schemes formed another discussion point.
Attenddees were urged to ensure swift post-loan security document handovers adhering to Reserve Bank directives. Cybersecurity governance and the growing realm of digital payments rounded off the productive performance review dialogue between the top financial policymaker and heads of major publicly-owned banks.
