Prime Minister Narendra Modi said on Thursday that the government has helped the banking industry in every manner possible and that it is now very strong. He said that the banking industry is now in a strong position as a result of the changes implemented over the previous 6-7 years. The prime minister noted that banks are reflecting an inherent strength today while speaking at a conference on ‘Creating Synergies for Seamless Credit Flow and Economic Growth.’ He said that the banks’ financial health has improved significantly as a result of bad debt recovery.
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Over Rs 5 lakh crore in bad loans have been recovered, according to Modi. He went on to say that his administration has tackled every financial issue with remedies such as nonperforming assets (NPAs) and bank recapitalization. He said that banks currently have sufficient cash and that there is no NPA overhang. According to the prime minister, his government enacted bankruptcy legislation and reinforced the debt collection tribunal. The National Asset Reconstruction Company is projected to address stressed assets of Rs 2 lakh crore, he added.
Despite the Covid-19 epidemic, he continued, India’s banking industry performed well in the first half of the current fiscal year (April-September). International agencies have upgraded the sector’s prognosis as a result of this. Banks must now embrace a partnership approach to assist companies prosper, according to Modi, and shift away from the concept of being a loan “approver” to a loan “applicant.”
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He urged financial institutions to provide “tailored solutions” to firms and micro, small, and medium-sized enterprises (MSMEs). “Don’t sit around waiting for people to come to banks. “You must go to them,” he stated.
