Banks have been monitoring their top 30 bad loan accounts for quite some time now. To a specific query regarding the bad loans with  United Bank of India (UBI), he said the issue would be separately discussed with RBI Governor Raghuram Rajan.

Chidambaram, however, said the UBI has managed to recover 1,200 crore in January and February. When asked about the curbs on import of gold, he said the government would revisit the customs duty only after factoring in the final Current Account Deficit (CAD) numbers for the 2013-14 financial year.

Chidambaram held the 'Quarterly Performance Review Meeting' with the Chief Executive Officers (CEOs) of state owned banks and financial institutions.

Government, Chidambaram said, will continue to provide capital support to banks, but the lenders are expected to focus on profitability. That apart, the Finance Minister said the government will convene a meeting of telecom service providers and the Indian Banks' Association to discuss measures to increase the penetration of mobile banking services in the country.

He also said the model code of conduct, which came into force today following the announcement of general elections, will not affect the process of issuance of new banking licenses by the Reserve Bank.

Besides, he clarified that the Foreign Investment Promotion Board (FIPB) will continue to take decisions on investment proposals and the government will not come to a halt because of the announcement of Lok Sabha elections.

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