New Delhi: Prime Minister Narendra Modi urged the country’s top lenders on Wednesday to fund bankable projects, undeterred by the non-performing assests generated in the past, and promised to fully back the executives.

Modi also prodded the bankers to push loans to MSMEs, farmers, micro-financial institutions and non-banking financing companies, which were provided special thrust during the package announced by Finance Minister two months ago. The Prime Minister reassured banks that he was strongly behind them and they should not have any fear. He also said that no banker was in jail for taking a decision in the course of his duty.

The meeting came in the backdrop of concerns in the Government that banks were parking funds instead of lending for productive use, which is seem to be crucial to revive growth. Bankers are risk averse as not just public sector executives but even those from the private sectors, including the ICICI bank top management, are facing corruption charges. Modi used the platform to once again reassure banks saying that he was strongly behind them and they should not have any fear.

Modi suggested that there was need for assurances on cash flows from projects and the development institutions such as SIDBI and IIFCL should be providing equity capital instead of competing with banks. Banks suggested that they wanted to lend to individuals and small business based on data sought support on the digital side. Currently data on GST, income tax and credit history from Cibil data base are available separately and it was proposed that this could be aggregated, which will help in faster decision making and instant processing.

If there is one App for all the 50 odd Governments schemes, the customer can choose the scheme is available for directly apply to the bank of his choice from the application, bankers suggested. This will ensure the straight through processing of applications, they said. On the infrastructure side the bank said that on large projects like roads and power, cash flow risks because of toll collections or power purchase agreements should be dealt with so that the Invit (Infrastructure Investment Trusts) structure can be used for off loading infra loans after the projects is completed.