Lok Sabha Question No. 43 (STARRED), answered on 2023-07-24
Subject: Financial Performance of PSBs
Ministry: FINANCE
Asked by: Sudheer Gupta, Sambhajirao Mane Dhairyasheel

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA STARRED QUESTION NO. *43

Answered on the 24 th  July 2023/ Sravana 2, 1945 (Saka)

## Financial Performance of PSBs

## *43. SHRI SUDHEER GUPTA:

SHRI DHAIRYASHEEL

SAMBHAJIRAO MANE:

Will the Minister of FINANCE be pleased to state:

- (a) Whether the Government has reviewed the financial performance of Public Sector Banks (PSBs);
- (b) if so, the details thereof and agenda set for the same;
- (c) the details of the outcome thereof;
- (d) whether the Government has also reviewed the progress made by the banks in achieving targets set for the Government schemes like Kisan Credit Card, Stand-Up India, Pradhan Mantri Mudra Yojana etc. to help businesses affected by the COVID-19 pandemic;
- (e) if so, the details and the outcome of the said review; and
- (f) whether it is true that Public Sector Banks together has posted a record profit during the current fiscal year and if so, the details thereof?

## ANSWER

The Finance Minister (SMT. NIRMALA SITHARAMAN)

- (a) to (f): A statement is laid on the Table of the House.

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## Statement  for  Lok  Sabha  Starred  Question  no.  *43  for  24 th   July  2023,  regarding 'Financial  Performance  of  PSBs'  by SHRI  SUDHEER  GUPTA  and  SHRI DHAIRYASHEEL SAMBHAJIRAO MANE, Member of Parliament

(a) to (f): As per the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970  and  1980,  and  the  State  Bank  of  India  Act,  1955,  the  general  superintendence, direction  and  management  of  the  affairs  and  business  of  the  bank  vests  in  its  Board. However,  regular  meetings  are  held  with  the  top  management  of  Public  Sector  Banks (PSBs) from time to time to discuss progress under various agendas/schemes initiated by the Government including, inter alia, performance of the banks and progress under various schemes initiated by the Government like, PM SVANidhi, Kisan Credit Card, Stand-up India, Pradhan Mantri Mudra Yojana, etc.

In the meeting held on 6.7.2023 with Chief Executives of PSBs, discussions were held on various issues including, inter  alia, performance of banks, achievement of Priority Sector Lending targets, positive macro trends, improved business sentiments and progress under various Government schemes. It was decided that PSBs to take steps to adopt a focused approach on ease of service delivery and customer protection, follow regulatory norms, adopt robust risk management practices, focus on increasing rural, agriculture and sectoral credit to meet the Priority Sector Lending targets including in all sub-categories, etc. It was also decided that the sponsor banks of the Regional Rural Banks (RRBs) to take steps for technological upgradation of the RRBs to make them more efficient. Performance under PM SVANidhi scheme, which was started to support COVID affected street vendors to restart  their  businesses,  was  noted,  wherein  50.57  lakh  loans  have  been  disbursed, amounting to Rs. 6,482 crore, to 38.5 lakh street vendors as on 20.7.2023.

Financial performance of PSBs was also noted which showed that all the major financial parameters viz., credit  deployment,  profitability,  asset  quality,  capital  adequacy,  etc.  have significantly improved and that the PSBs have posted record aggregate net profit of Rs. 1,04,649 crore in FY2022-23.

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