PM Modi to meet PSB heads on Wednesday, likely to discuss issues being faced by financial sector

New Delhi: Prime Minister Narendra Modi will on Wednesday meet with heads of public sector banks (PSBs) and is likely to assess progress on credit guarantee scheme for the MSMEs. Bankers are likely to make presentations before the PM on various aspects including credit flows and issues faced by the sector, government sources told ET. Modi had initiated an annual retreat with heads of public sector banks in 2016 called the 'Gyan Sangam', which laid the ground for number of measures that were undertaken for the sector. The meeting comes in the backdrop of a major push by the government for credit flow to industry as also the proposed policy on public sector enterprises that will set the tone for big-bang privatisation of such enterprises in various sectors. 77227082The policy, which is in the works, will categorise various sectors as strategic or non-strategic while restricting the number of PSUs in a strategic sector to four. Presentations by the PSB heads are likely to cover the key issues being faced by the sector in the backdrop of the slowing economy besides status on credit disbursement. In May, as part of its ₹20 lakh crore package, the government had announced a ₹3 lakh crore 100% credit guarantee scheme for micro, small and medium enterprises in response to the pandemic and lockdown. "This would be one the key focus areas," said a person privy to the me .