Psb News

The step assumes significance as capital infusion will provide support to state-owned lenders as the deepening covid-19 crisis that has put borrowers under pressure

Finance minister Nirmala Sitharaman, on Wednesday, urged state-owned banks to remained focused on their core business

Finance Minister Sitharaman says, 'Banks are going to be catalyst for economic revival' She also adds that banks must reach out to those areas where banking has not reached yet

The government has been prodding banks to increase credit disbursal to support small businesses ECLGS was announced as a part of the government’s ₹20 trillion financial package to help the poor and the small businesses tide over the covid-19 crisis

The development comes days after the finance ministry asked all departments and ministries to not initiate new schemes in the current financial year The development comes days after the finance ministry asked all departments and ministries to not initiate new schemes in the current financial year

The advisory also comes against the backdrop of Punjab National Bank recently purchasing three Audi cars worth over ₹1.30 crore for travel of its top executives Schemes that have already been approved for the current financial year would remain suspended till March 31 next year or further orders

The impact will be more pronounced for PSBs, where the Centre has not proposed any capital infusion for FY21 The government had infused ₹70,000 crore into state-owned banks in fiscal 2020

The merger has created the second largest nationalised bank of the country - both in terms of business and branch network after the State Bank of India There were as many as 27 PSBs in 2017. The total number of public sector banks in the country has come down to 12

Small  banks  postpone  key  decisions  on  resolution  to  stay  risk averse as merger date nears IBC resolution easier when acquiring and target banks are in the same consortium

Some small banks want merger to be delayed, while others want it completed by 1 April