Due to rise of Covid cases, FM meets RBI Chief and PSU bank heads to review preparedness

Finance Minister Nirmala Sitaraman evaluated public sector banks’ (PSBs) readiness to deal with any potential disruption caused by the spike in covid-19 cases, which has forced several states to impose limitations.

Sitharaman examined different efforts taken by the banks in implementing pandemic-related measures launched by the Centre and Reserve Bank of India during her meeting with the heads of PSBs (RBI).

Following the virtual review meeting, the finance minister met with Reserve Bank of India (RBI) Governor Shaktikanta Das to address post-pandemic economic recovery and PSB preparation to deal with any issues provided by the ongoing wave of covid-19.

Bankers have advised the minister that the state-run banks are appropriately funded and prepared for any potential stress scenarios, according to an official statement from the finance ministry.

“In their overall assessment of the situation, bankers are satisfied that PSBs are appropriately funded and that banks are prepared for any potential stress scenarios,” it stated.

Union Minister of State for Finance Bhagwat Kisanrao Karad and Secretary, Department of Financial Services (DFS), Debasish Panda, as well as senior DFS officials, attended the review meeting.

Despite the headwinds from global development and Omicron expansion, the minister highlighted that the corporate picture was gradually improving. She emphasized that contact-intensive industries may require further assistance in combating the epidemic.

Credit demand is projected to increase as a result of increased retail sales, improved macroeconomic prospects, and improved borrowers’ financial health, she said.