Finance Ministry: The Finance Ministry has asked public sector banks to keep a proper eye on large loans and make adequate provisions for pledged shares of large companies.
The ministry has said this in view of the global financial situation arising after the failure of some banks in America and Europe. According to sources, there is a need for integrated market data on pledged securities to take timely action.
Finance Ministry said this
Besides, in a recent meeting with Finance Minister Nirmala Sitharaman, heads of public sector banks were asked to manage loans given to companies, including pledged shares. Sources said that the finance ministry also said that it would be prudent to increase the stress-testing of loan accounts of large companies.
Banks should also pay attention to small deposits – Ministry of Finance
Public sector banks were also advised to focus on small deposits instead of large and corporate deposits and stay away from the discretionary pricing system. The Finance Minister last week reviewed public sector banks on the basis of various financial parameters. He urged banks to remain vigilant about interest rate risks and stress test the situation regularly.
Recently held a meeting
On Saturday, Finance Minister Nirmala Sitharaman had a big meeting with the heads of public sector banks. The Finance Minister had told all the public sector banks that they should take preventive measures against any anticipated shock. Even after the meeting, the Finance Ministry had said that all major financial parameters indicate stable and flexible public sector banks. At the same time, banks had also assured Finance Minister Nirmala Sitharaman that the Indian banking system is strong and there is nothing to worry about at the moment.
