Prime Minister Narendra Modi is likely to meet chief executives of Indian banks on June 21. He is to discuss a blueprint for the banking sector for the next five years in terms of growth and consolidation amid a slowing economy and a crisis in the shadow banking sector.
The Finance Ministry held discussions with bank chiefs on improving lending to micro, small and medium enterprises, agriculture and other productive sectors of the economy, and also on ease of doing business.
The Ministry has also held discussions with banks on the ongoing crisis in non-banking financial sectors as NBFCs are facing liquidity crunch following the debt default by IL&FS.
The country’s GDP growth has been slowed to 5.8% in the January-March 2019 quarter. It might drag down the full-year growth to a 5-year low of 6.8%. This has impacted the productive sectors of the economy.