Financial Infusion
The government has clarified that there is no proposal to merge public sector general insurance companies. Minister of State for Finance Pankaj Chaudhary, in a written reply to the Lok Sabha, stated that Rs 17,450 crore was infused between 2019-20 and 2021-22 into Oriental Insurance, National Insurance, and United India Insurance to support their growth.
Background and Current Status
Despite a 2018-19 Budget announcement by then Finance Minister Arun Jaitley about merging the three companies, the process was halted due to their poor financial health.
MSME Sector NPA Report
Chaudhary also reported that the total credit outstanding to the MSME sector by Scheduled Commercial Banks (SCBs) as of March 31, 2024, is Rs 28.04 lakh crore, with non-performing assets (NPAs) amounting to Rs 1.25 lakh crore, representing a gross NPA percentage of 4.46%.
