Finance Minister Arun Jaitley on Friday expressed hope that the public sector banks would tighten up to a point where they are able to transmit cuts in policy rates by the Reserve Bank of India (RBI).
Addressing the media after the quarterly performance review meeting with the Chief Executive Officers and Managing Directors of the public sector banks and financial institutions in the national capital, Jaitley said the emphasis was on the first quarter result and problems related to the banking sector besides several other issues.
"Progress made in the various Social Sector Schemes such as Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Surkasha Bima Yojana and Atal Pension Yojana as well as in case of Pradhan Mantri Jan Dhan Yojana, Stand-Up India and MUDRA Schemes were discussed during the meeting," he said.
"Collectively as far as PSBs are concerned, they made an operating profit in the first quarter of Rs. 32,967 crore. But after provisioning and taxation adjustments, the net profit comes out to be 222 crores," he added.
The meeting, which was held to review the overall performance of public sector banks in current financial year and last quarter in particular, along with the progress of credit and growth and asset quality especially with regard to priority sectors also cashed in on cyber security, which is amongst the fresh challenges in the financial inclusion and literacy.
The meeting also held discussions against the backdrop of several state-run banks reporting huge losses for the quarter ended June 30, owing to a sharp rise in provisioning for non-performing assets on account of an asset quality review ordered by the RBI.
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