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Under fire for poor credit pickup, PSU bank officials in a catch-22 situation

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Branch level officials in India’s public sector banks are having a difficult time managing expectations of their superiors on higher credit growth.

According to two people directly aware of the matter, while many PSU banks have pulled a stop on fresh disbursals due to concerns on credit quality and repayment capacity of borrowers among other things, continuing pressure from the top hierarchy has branch officials in an unenviable position.

Also, in some cases branch officials have found that demand for fresh credit has fallen drastically, bringing loan disbursals to a standstill.

This pressure of disbursing more and more covid-19 loans, building up for some time now, has escalated after public sector lenders received a notification from the

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