Prime Minister Narendra Modi on Wednesday held a series of meetings with state-owned banks and NBFCs and assured them of all support to the sector and adequate capital for recapitalisation.

He asked the banking sector to offer more credit to MSMEs to support the Atma nirbhar Bharat programme and act as a catalyst for economic growth, sources said.

The meeting discussed the crucial role of the financial and banking system in supporting growth.

It was decided that small entrepreneurs, self-help groups and farmers would be encouraged to use institutional credit to meet their credit needs and grow. Each bank needs to introspect and take a relook at its practices to ensure stable credit growth, an official release said.

“Banks should not treat all proposals with the same yardstick and need to distinguish and identify bankable proposals and to ensure that they get access to funding on their merit and don’t suffer in the name of past NPAs,” the release added.

The meeting was part of a series of interactions that the Prime Minister has been holding for the last few weeks with the representatives of various sectors, sources said.

The Prime Minister is slated to hold a meeting with the heads of financial regulators like the RBI and Sebi on Thursday.

Finance minister Nirmala Sitharaman, commerce minister Piyush Goyal and highways minister Nitin Gadkari will be part of this meeting.

The meeting is likely to focus on the loan moratorium, single window clearance and MSMEs.