Loan mela mindset

Govt should not push PSBs to lend

Union Finance Minister Nirmala Sitharaman on Wednesday asked public sector banks (PSBs) to “go out and give credit” through outreach programmes in every district of the county and referred to the 2019 “loan melas” undertaken by banks across 400 districts. She also asked PSBs to reach out to different sectors to address their needs. The idea clearly is to keep the economic recovery going. Although economic activity has recovered with a decline in Covid-19 cases, the overall demand condition in the economy is weak. A higher flow of credit to various segments of the economy, it is hoped, will help