PSU banks are told to lend more, create jobs

New Delhi: Just months before the Lok Sabha election, the Centre and the Reserve Bank on Monday directed state-owned banks to step up lending to boost industrial growth and create jobs in the economy.

RBI governor Shaktikanta Das told the CEOs of state-owned banks to observe prudential norms while giving loans, but also to avoid “excessive conservatism”. The Centre is keen to increase lending, especially to medium and small enterprises, which are the major job creators.

Mr Das underlined the importance of PSU banks for the economy, particularly now, to meet broader economic goals. Finance minister Piyush Goyal reviewed the performance of PSU banks at the meeting, and said: “We discussed measures to promote MSME loans and agriculture lending.”