Finance Ministry asks banks to cut costs


No new cars, no interior decoration items, no refurbishment of guesthouses, and reduced entitlements and prerequisites for furniture and rent on housing, the finance ministry on Wednesday issued a stern diktat to public sector banks (PSB) to defer ‘avoidable’ expenditure until the next fiscal.

The ministry has directed PSBs to place its order on spending on publicity and conferences by 20% before their boards. The order came following reports that a large public lender had spent Rs 1.34 crore on three Audis to ferry its top management.

“In the context of the COVID-19 pandemic, it is necessary that banks take appropriate measures to ensure productive use of their financial resources for core business activities,” the order said.

The ministry asked banks to rationalise expenses by weighing their operational profitability and cost to income ratio against composition of vehicles on hire and the occupancy levels at guesthouses.

The government itself has taken a series of measures to tighten its purse strings by barring new scheme proposals for additional fund allocation other than Covid-19 related measures, limiting ministry and departments’ use of budgeted funds during the first quarter and freezing hikes in dearness allowance.

Further, the ministry advised banks to take up this order in their next board meeting and issue appropriate instructions internally.





Source link

Share This Post

Share on whatsapp
Share on facebook
Share on twitter
Share on pinterest
Share on reddit
Share on telegram
Share on email
Share on linkedin
Share on print

Posted By :

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

More to Explore

Want to Write Such Blogs?

Just Fill in Your Details to get started

Want to Write such blogs?

Join in like all our authors and be a part of this community

small_c_popup.png

Hello

We are happy you are here

[wppb-login]

Oh No!

It seems like you have forgotten your password. Don’t worry tell us your email id or username and we’ll try to help
Share on whatsapp
Share on twitter
Share on facebook
Share on pinterest
Share on reddit
Share on telegram
Share on email
Share on linkedin
Share on print
error: Alert: Content is protected !!
Secured By miniOrange