PSU banks aim at enhancing economic growth; focus on eight key areas of expansion
Honda goes off-road; supports women in becoming commercial pilots under their CSR initiative
July 30, 2019
Hilldaari Intiative: Making Dalhousie clean through a CSR collab
August 28, 2019

PSU banks aim at enhancing economic growth; focus on eight key areas of expansion

PSU Banking

To keep the credit flow pertinent, the government has come into association with public banks across the country to support small and large scale businesses.

To strengthen the reach of government schemes and provide better service delivery to the customers, the attempt is expected to further act in the way of bringing economic growth. While the overall credit growth lays stagnant at 12%, the consequences are expected to be countered.

The alignment of banks with ‘national priorities’ such as enhancing credit flow to small and medium businesses through psb59 and Mudra schemes, empowering SC/ST entrepreneurs, improving farmer income, facilitating digital transactions and focusing on the green economy is expected to work in the favor of economic upscaling.

The government has extensively detailed a “bottom-up” approach for banking reforms, and help

India becomes a $5-trillion economy in the next five years.

Several banks, including SBI, participated in this exercise across 380 locations. In Delhi alone, around 1,000 officers took part. Other major state-run banks, including Canara Bank, Bank of India, Union Bank and Oriental Bank of Commerce performed the same initiatives.

The country’s current largest creditor, State Bank of India, held three meetings, with Chairman Rajnish Kumar and addressed the media in Kolkata. Kumar said credit growth had been restricted due to demand constraints. “I have sufficient liquidity, but I cannot deploy it. I need demand for corporate credit to grow. The system has surplus liquidity, banks are adequately capitalized, and interest rates have moderated,” he opined.

Few of the eight key areas where the banks are expected to lay greater emphasis on are – credit growth, infrastructure financing, financial inclusion, digital transactions and CSR activities. This is the first time that such a massive exercise has occurred. Rajkiran Rai, MD & CEO of Union Bank, said, “With the economy at an inflexion point, the policy decisions/reforms taken now will define the future of banking and its contribution to economic growth.”

The CSR panel – headed by corporate affairs secretary Injeti Srinivas suggests the government categorize offences under CSR provisions as civil breaches, further inviting monetary fine. It has also favored offering tax deductions for CSR spending and carry-forward of unspent balances for three-to-five years.

Suggestions have also been brought to put the banks and limited liability partnerships (LLP) under the mandatory CSR expenditure framework. The revaluation of the framework is also expected to be put into place to strengthen the CSR ecosystem, including monitoring, implementation and evaluation of activities that are directed in that respect.

Piya Pal
Piya Pal
Piya Pal is an avid environmentalist who participates in events and summits to help people become aware about prevailing social issues In order to reach out to maximum people, she uses online portals to voice her concerns and help bring people together to help mitigate challenges.

Leave a Reply

Your email address will not be published.