FM to meet heads of PSU banks, southern state CMs on July 20

Continuing the consultation process to promote financial inclusion, Finance Minister Pranab Mukherjee will hold a meeting of heads of public sector banks and chief ministers of southern states on July 20.

The Finance Minister will also discuss the credit related parameters, especially for agriculture credit, micro and small enterprises credit, housing loans, education loans, credit to weaker sections and credit deposit ratio here.

This is the fourth and last in the series of regional meetings held by Mukherjee. Similar meetings were earlier held in eastern and north-eastern states, west and central zones and northern states.
    
The meeting, during which chiefs of public sectors banks would be present, is also likely to discuss the impact of the recent decision of RBI to raise key short-term and lending rate by 25 basis points to control inflation, which crossed the double digit mark in May.
    
Chief Ministers of Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Puducherry among others are expected to attend the meeting.
    
One of the key points of discussion in the meeting would be financial inclusion to provide appropriate banking facilities to habitations having population above 2,000 by March 2012.
    
Implementation of the 'Aam Admi Bima Yojana' (insurance scheme for common man) and co-contributory pension scheme Swavalambam, important priorities of the UPA-II government, would also be reviewed in the meeting among others.
    
Besides chiefs of public sector banks, heads of Nabard, Sidbi, IIFCL and Exim Bank will also participate in the meeting.
    
The meeting will also take stock of the financial performance of the banks. The credit flow to the productive sectors would also be assessed.
    
The broad agenda of the meeting includes review of credit growth and agriculture credit, infrastructure lending and banks network in 129 blocks that do not have banks.
    
Among others, capital adequacy over medium-term and housing and education loans would also be taken up in the meeting.