Addressing bankers at the symposium to ‘Build Synergy for Seamless Credit Flow and Economic Growth’, Modi said banks have to now adopt a partnership model to help businesses thrive and move away from the idea of being a loan “approver” to a loan “applicant”.
Modi was addressing the concluding session of the conference on ‘Creating Synergies for Seamless Credit Flow and Economic Growth’. “The reforms initiated by the government in the banking sector in the last six-seven years, supported the banking sector in every way, due to which the sector is in a very strong position today. The financial health of banks is now in a much improved condition,” Modi said.
The Prime Minister said his government had found to address the problems and challenges that existed before 2014. “We addressed the problem of NPAs, recapitalised banks and increased their strength. We brought reforms like IBC, reformed many laws and empowered debt recovery tribunal. A dedicated Stressed Asset Management Vertical was also formed in the country during the COVID-19 period,” Modi said.
“We addressed the problem of NPAs, recapitalized banks and increased their strength. We brought reforms like IBC, reformed many laws and empowered debt recovery tribunal. A dedicated Stressed Asset Management Vertical was also formed in the country during the Corona period” Modi said.
The Prime Minister said today, “Indian banks are strong enough to play a major role in imparting fresh energy to the country’s economy, for giving a big push and making India self-reliant. I consider this phase as a major milestone in the banking sector of India”. Steps taken in the recent years have created a strong capital base for the banks. Banks have sufficient liquidity and no backlog for provisioning of NPAs as NPA in public sector banks is at the lowest in the last five years.
Speaking on the overall impact of financial inclusion, Modi said that when the country is working so hard on financial inclusion, it is very important to unlock the productive potential of the citizens. He gave an example of a recent research by the banking sector itself where more Jan Dhan accounts are opened in the states have led to reduction in the crime rate. Similarly, the Prime Minister said the scale at which corporates and start-ups are coming forward today is unprecedented. “In such a situation, what can be a better time to strengthen, fund, invest in India’s aspirations?”, the Prime Minister asked.
The Prime Minister called upon the banking sector to move by attaching themselves with national goals and promises. He praised the proposed initiative of web based project funding tracker to bring together ministries and and banks. He suggested that it will be better if it is added to the GatiShakti Portal as an interface. He wished that in the ‘Amrit Kaal’ of independence, the Indian banking sector will move with big thinking and Innovative approach.
