Finance Minister P Chidambaram is slated to meet the heads of public sector banks later today. The meeting comes against the backdrop of slowing growth and rising non performing assets of PSU banks.
Most of the PSU banks have reported non performing assets that have been rising steadily in the last couple of quarters and the same are not bottoming out. With the monsoon season witnessing a rainfall deficiency the agricultural sector is unlikely to do well, which could add pressure on PSU bank NPAs going forward.
Today's meeting with PSU banking chief's is the first meeting by Finance Minister P Chidambaram, after taking over from Pranab Mukherjee.