The Finance ministry advises PSBs to consider fintech partnerships and co-lending opportunities

The Finance Ministry has advised public sector banks to collaborate with fintech for partnerships and co-lending schemes to increase their business. The Ministry had conducted a performance review of the public sector banks in which the banks were asked to introduce data analytics and technology advancements to push enhance their lending. Along with this, the banks were suggested to introduce IT security systems and develop cybersecurity measures to deal with fraud.

The sources claim that banks were asked to provide loans to productive sectors in order to recover the economy that is facing the winds, including the Russia-Ukraine war. According to the RBI’s data, The lending growth in the public sector banks has increased significantly, and earlier, the number was at 3.6 per cent in 2021, which has now become a strong 7.8 per cent. Some of the PSBs have had a 26% growth, namely Bank of Maharastra, State Bank of India and Union Bank of India.