<p>Prime Minister Narendra Modi on Wednesday held a meeting with top bankers and impressed upon them the need to push lending towards the productive sectors for the revival of the economy hit by the Covid-19 pandemic.</p>.<p>The three-hour-long meeting, held via video-conferencing, was attended by CEOs of large public and private sector banks along with heads of non-banking financial companies (NBFCs).</p>.<p><a href="https://www.deccanherald.com/national/coronavirus-news-live-updates-unlock-30-rules-india-maharashtra-karnataka-delhi-tamil-nadu-mumbai-bengaluru-chennai-ahmedabad-new-delhi-total-cases-deaths-recoveries-today-covid-19-coronavirus-vaccine-covid-vaccine-864013.html"><strong>For latest updates on coronavirus outbreak, click here</strong></a></p>.<p>According to sources, the importance of the financial sector in achieving the objective of 'Atmanirbhar Bharat' or self-reliant India was highlighted during the meeting.</p>.<p>The Prime Minister assured all support from the government to the financial sector in achieving the objective, the sources said.</p>.<p>The topics on the agenda for the meeting included credit products and efficient models for delivery, financial empowerment through technology, prudential practices for stability and sustainability of the financial sector.</p>.<p>Those who attended the brain-storming session included SBI Chairman Rajnish Kumar, PNB Managing Director S S Mallikarjuna Rao, ICICI Bank Managing Director Sandeep Bakhshi, HDFC Bank Managing Director Aditya Puri and HDFC Ltd Managing Director Renu Sud Karnad, among others, sources said.</p>.<p>Following the outbreak of Covid-19, bank credit growth tumbled to 7 per cent in May from 11.5 per cent a year ago. The growth is likely to remain muted during the current fiscal due to uncertainty and consequent risk aversion on part of borrowers as well as lenders.</p>.<p>To push credit growth, the RBI brought down its benchmark lending rate to a historic low of 4 per cent. However, corporate and retail borrowers are still shying away from taking loans.</p>.<p><a href="https://www.deccanherald.com/national/coronavirus-india-update-state-wise-total-number-of-confirmed-cases-deaths-on-july-29-866921.html"><strong>Coronavirus India update: State-wise total number of confirmed cases, deaths on July 29</strong></a></p>.<p>In the absence of enough loan demand, banks are forced to park their money with the Reserve Bank under the reverse repo window.</p>.<p>The Reserve Bank of India (RBI) eased the monetary policy, reduced reserve requirements and introduced liquidity in the economy to the extent of almost 3.9 per cent of GDP.</p>.<p>Banks and other financial institutions are implementing the bulk of the measures announced in May under the Rs 20.97-lakh crore economic package to deal with the coronavirus crisis. </p>
<p>Prime Minister Narendra Modi on Wednesday held a meeting with top bankers and impressed upon them the need to push lending towards the productive sectors for the revival of the economy hit by the Covid-19 pandemic.</p>.<p>The three-hour-long meeting, held via video-conferencing, was attended by CEOs of large public and private sector banks along with heads of non-banking financial companies (NBFCs).</p>.<p><a href="https://www.deccanherald.com/national/coronavirus-news-live-updates-unlock-30-rules-india-maharashtra-karnataka-delhi-tamil-nadu-mumbai-bengaluru-chennai-ahmedabad-new-delhi-total-cases-deaths-recoveries-today-covid-19-coronavirus-vaccine-covid-vaccine-864013.html"><strong>For latest updates on coronavirus outbreak, click here</strong></a></p>.<p>According to sources, the importance of the financial sector in achieving the objective of 'Atmanirbhar Bharat' or self-reliant India was highlighted during the meeting.</p>.<p>The Prime Minister assured all support from the government to the financial sector in achieving the objective, the sources said.</p>.<p>The topics on the agenda for the meeting included credit products and efficient models for delivery, financial empowerment through technology, prudential practices for stability and sustainability of the financial sector.</p>.<p>Those who attended the brain-storming session included SBI Chairman Rajnish Kumar, PNB Managing Director S S Mallikarjuna Rao, ICICI Bank Managing Director Sandeep Bakhshi, HDFC Bank Managing Director Aditya Puri and HDFC Ltd Managing Director Renu Sud Karnad, among others, sources said.</p>.<p>Following the outbreak of Covid-19, bank credit growth tumbled to 7 per cent in May from 11.5 per cent a year ago. The growth is likely to remain muted during the current fiscal due to uncertainty and consequent risk aversion on part of borrowers as well as lenders.</p>.<p>To push credit growth, the RBI brought down its benchmark lending rate to a historic low of 4 per cent. However, corporate and retail borrowers are still shying away from taking loans.</p>.<p><a href="https://www.deccanherald.com/national/coronavirus-india-update-state-wise-total-number-of-confirmed-cases-deaths-on-july-29-866921.html"><strong>Coronavirus India update: State-wise total number of confirmed cases, deaths on July 29</strong></a></p>.<p>In the absence of enough loan demand, banks are forced to park their money with the Reserve Bank under the reverse repo window.</p>.<p>The Reserve Bank of India (RBI) eased the monetary policy, reduced reserve requirements and introduced liquidity in the economy to the extent of almost 3.9 per cent of GDP.</p>.<p>Banks and other financial institutions are implementing the bulk of the measures announced in May under the Rs 20.97-lakh crore economic package to deal with the coronavirus crisis. </p>