In what has been a dismal year for public sector banks (PSBs) across the country, resulting in 19 PSBs reporting losses for FY 2017-2018, Union Finance Minister Piyush Goyal will meet 6 PSBs to chalk out their future. The Union Finance Minister will meet the chief executives of 6 public sector banks based out of Kolkata and Delhi to discuss improvement of their balance sheets. Goyal will meet the chief executives of Punjab National Bank, UCO Bank
Oriental Bank of Commerce,Punjab and Sind Bank, Allahabad Bank, and United Bank of India.
The meeting which will be held in Delhi will focus on improvement of net losses and non-performing assets that have plagued the banks and will draw out a roadmap for them to achieve global standards.
Amongst the public sector banks that the Union Finance Minister will meet, Punjab National Bank leads the table with regard to net losses amounting to Rs.122.8 billion for FY 2017-2018. Oriental Bank of Commerce registered net losses amounting to Rs.58.7 billion for FY 2017-2018, while Allahabad Bank reported net losses of Rs.46.7 billion. UCO Bank reported a loss of Rs.44.7 billion and United Bank reported non-performing assets more than 20%.
To improve the situation, the Reserve Bank has put a number of public sector banks under prompt corrective action (PCA) which brings about lending restrictions and in some cases disallows banks from hiring employees.
Source: Business Standard