Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Politics / Policy/  Credit offtake of banks to pickup from June: Vinod Rai
BackBack

Credit offtake of banks to pickup from June: Vinod Rai

The first priority is that lending process must start, second priority is vacancies must be filled up, says Vinod Rai

Bank Board Bureau chief Vinod Rai said passage of the bankruptcy law is very useful. Photo: Pradeep Gaur/MintPremium
Bank Board Bureau chief Vinod Rai said passage of the bankruptcy law is very useful. Photo: Pradeep Gaur/Mint

New Delhi: Credit offtake to industry, which has seen decline in the recent past due to slowdown in certain sectors and issues related to bad loans, is likely to see an uptick from next month, Bank Board Bureau chief Vinod Rai said on Thursday.

“Managing directors we have met are very confident of the fact with the kind of measures we have put in place, lending process would start very quickly and you will see very healthy growth in the credit offtake of the banks," Rai said after the third meeting of the Bureau since being set up in February.

“We have given them comfort... You will see from the next month onwards. We don’t give direction it is board driven process," he said after nearly four-hour long meeting.

He, however, did not elaborate on the specific measures taken to push lending. The Bureau was constituted to help government select heads of public sector banks and financial institutions and assist banks in developing strategies with regard to capital-raising and consolidation.

Besides, it is looking at bringing the non performing assets (NPAs) or ban loans down in public lenders. State-owned banks have been grappling with mounting bad loans, which hit a high of 3.61 trillion at the end of December.

On consolidation, Rai said, it will happen in due course of time. The first priority is that lending process must start, second priority is vacancies must be filled up, said the former Comptroller and Auditor General of India.

Asked if the PSU banks would need more than 25,000 crore budgeted for the current fiscal, he said, “once the results are declared then we will get to know what is the requirement."

He also said passage of the bankruptcy law is very useful. “It strengthens hands of lots of bankers. I think it will be very constructive." There are 22 state-owned banks in the country, including SBI, IDBI Bank and Bharatiya Mahila Bank.

Besides Chairman, the Bureau has three ex-officio members and an equal number of expert members. Expert members are ICICI Bank’s former joint MD H.N. Sinor, Bank of Baroda’s former CMD Anil K. Khandelwal and rating agency Crisil’s ex-chief Rupa Kudwa. Its ex-officio members are Secretary, department of public enterprises, financial services secretary and Reserve Bank of India (RBI) deputy governor.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Politics News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 12 May 2016, 10:18 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App