Banks are set to start a credit outreach programme later this year under which they would go to every district of the country, Finance Minister Nirmala Sitharaman said on Wednesday, adding that they have also been asked to provide sector-specific support.

Wrapping up her two-day trip to Mumbai, the Finance Minister said she has asked banks to interact with export promotion agencies to help address exporters’ requirements and also look at providing support to sunrise sectors as well as fintechs.

Banks have also been asked to come up with specific schemes for the North-East, Sitharaman told presspersons.

She also highlighted that high CASA deposits in the eastern States are a matter of concern and said banks should give a greater credit expansion facility in the region.

The Finance Minister also noted that public sector banks have done well collectively and are in a position to go to the market to raise funds.

Debasish Panda, Secretary, Department of Financial Services, said banks were in the process of raising about Rs 12,000 crore from the markets this fiscal.

While she did not comment on questions relating to privatisation of public sector banks and general insurance companies, she stressed that the government will have bare a minimum presence in strategic sectors.

“Banks, financial services and insurance have been identified as strategic sectors,” she stressed.

‘Bad bank close to getting a licence’

Sitharaman said the proposed bad bank is close to getting a licence. Panda said the Indian Banks’ Association has applied to the RBI and a licence for the bad bank is expected soon. Projects have also been identified, he said.

National Monetisation Pipeline

The FM also stressed that there will be no change of ownership under the National Monetisation Pipeline and ownership of assets will remain with the Union Government.

“These are brownfield assets but are under utilised,” she said in response to a query.

Taking on Opposition concerns, she questioned who had monetised the Mumbai-Pune Corridor and taken out a Request for Proposal for the New Delhi Railway Station.

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