Text of the Statement made by Finance Minister After the Review meeting of CEOs of PSBs and FIs

Press Information Bureau

Government of India

Ministry of Finance

12-June-2012 17:37 IST

Following is the text of the statement made by the Union Finance Minister Shri Pranab Mukherjee after the review meeting of the Chief Executive Officers (CEOs) of Public Sector Banks (PSBs) and Financial Institutions (FIs), here today:-

“I congratulate the Public Sector Banks (PSBs) for their good performance during the year 2011-12 on various parameters such as Priority Sector lending which has grown by 16.37% as against 13.49% last year; recovery against outstanding dues in the last quarter of year 2011-12 has been unprecedented; net profit has grown to Rs.49,512 crores as against Rs.44,900 crore last year, registering an increase of 10.27% and so on.

Public Sector Banks have also done a commendable work in extending banking facilities to 74194 villages having population of 2000 and above in the last 2 years. Over 3 crore new bank accounts have been opened in these villages.

There has been a marked improvement in the performance of Regional Rural Banks (RRBs). Out of the 82 RRBs, 81 RRBs has successfully migrated to Core Banking Solution (CBS) and have joined the payment system. RRBs have also undertaken branch expansion. Against 521 branches of RRBs opened in 2010-11, 914 branches have been opened in 2011-12.

There has been an increase of 15% in flow of credit to minorities as compared to last year. Credit flow to minorities stood at 14.55% of total priority sector lending against 14.16% at the end of 2010-11.

The growth in agricultural credit has been satisfactory. I have emphasized upon banks to meet the ambitious target of flow of Rs.5,75,000 crore agricultural credit this year.

I have in particular asked the Public Sector Banks to pay special attention to the following:-

1. Ensure that every farmer household gets a Kisan Credit Card (KCC). Existing accounts should be quickly replaced by debit cards under the new scheme.

2. Implementation of Education Loan Scheme and the new scheme of Education Loan for Vocational Courses.

3. Every family to have a bank account and to undertake Electronic Benefit Transfer during this year in collaboration with State Governments.

4. RRBs to undertake coordinated branch expansion with their sponsor banks and must start roll out of ATMs and issuance of credit cards in collaboration of their sponsor banks.

5. Public Sector Banks must promote electronic mode of transactions over other modes. They should examine the possibility of making NEFT transactions upto Rs.1 lac free of charges, as has been done by Oriental Bank of Commerce.”

*****

DSM/SS/GN