FM to meet RRB chiefs tomorrow to review performance

Finance Minister Pranab Mukherjee will meet heads of Regional Rural Banks (RRBs) tomorrow to take stock of their performance and credit flow to farm sector in the light of weak monsoon.

The broad agenda of the meeting include review of agriculture credit, non-performing assets and branch opening, official sources said.

The meeting will also dwell upon capital adequacy ratio of these banks which play vital role in the rural credit expansion, especially in drought like situation.

The Meteorological Department has officially declared 2009 a drought year. The cumulative nationwide rainfall between June 1 and August 12 has measured 29 per cent below normal levels.

It would also discuss the scheduling of amalgamation of RRBs, they said.

Following the consolidation, the number of RRBs have come down from 196 to 84 spread across the country.

The meeting will also take stock of the annual financial performance of these banks.