Union Budget 2023: Finance Ministry to meet public sector banks; performance, profitability likely to feature on agenda

The Finance Ministry has convened a review meeting with the public sector banks on January 19. The meeting assumes significance as it comes days ahead of the presentation of the Union Budget by Finance Minister Nirmala Sitharaman. 

The Secretary of the Department of Financial Services (DFS) is likely to discuss the performance of the banks with the representatives at the meeting. As per the sources, the possible points of discussion during this meeting will include how to increase the profitability of banks.

The quarterly results of the banks of the quarter that ended in December are coming out. So far, the Bank of India and Federal Bank have published their results, and the results of the other banks will be released in the coming week. Banks will also inform the Finance Ministry about the status of government schemes. 

With just a couple of weeks left for the Finance Minister to present the Budget 2023, there has been a lot of speculation regarding the same. The Finance Ministry held a series of meetings with representatives of sectors like banks and financial institutions in November.  

In a recent interview with Zee Business, Dr. Bhagwat Kishanrao Karad, Minister of State, Finance Ministry, mentioned that the government will be focusing on employment generation in the banking sector. The government is aiming to create nearly 30,000 jobs this year in the banking sector.  

In the Budget 2022, the Ministry of Finance announced that 100 per cent of 1.5 lakh post offices would be brought on to the core banking system, and Scheduled Commercial Banks received the nod to set up 75 Digital Banking Units (DBUs) in 75 districts.  

Union Budget 2023 will be presented by Finance Minister, Nirmala Sitharaman on February 1, 2023.  This will be the last major Budget before the upcoming Lok Sabha election in 2024.

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