Finance Minister P. Chidambaram will meet heads of public sector banks on Tuesday to take stock of their non-performing assets, credit growth and financial performance.
The broad agenda of the meeting included reviewing ways to cut down deteriorating asset quality. Credit growth in the targeted sectors was also a part of the agenda, a senior Finance Ministry official said.
Gross non-performing assets (NPAs) of public sector banks rose to Rs.1.76 lakh crore at the end of June quarter from Rs.1.55 lakh crore at March 31, 2013.
The ratio of gross NPA to gross advances for commercial banks rose from 2.36 per cent in March, 2011, to 3.92 per cent in June, 2013.
Besides, financial performance of public sector banks would also be reviewed as the first half of the current fiscal was over, the official said.
The Finance Minister is expected to ask banks to give their assessment of additional funding they would require to give loans at lower interest rates to sectors such as auto, consumer durables, housing etc during the festival season to stimulate the economy. — PTI