PSBs should extend adequate credit to industry to support growth: MoS Finance

New Delhi, June 21 (KNN) To continue to support economic growth, the Ministry of Finance advised the public sector banks (PSBs) on Monday to extend adequate credit to the industry. 

The meeting with chiefs of public-sector banks (PSBs) remained inconclusive as finance minister Nirmala Sitharaman could not attend the meeting, as published in Financial Express. 

Minster of State for Finance Bhagwat Karad chaired the meeting in her absence. 

Another meeting will take place soon in the presence of Union Minister of Finance.

PSBs are in a position to further improve lending as they are turned profitable last fiscal and adequately capitalised.

This seems imperative as the Reserve Bank of India (RBI) is likely to be forced to go for a third round of rate increase in August to contain the inflation. 

The PSB chiefs also briefed the ministry that their capitalisation level is adequate at the moment and would raise funds from the market when required.  (KNN Bureau)