Banking sector among the strongest globally: Prime Minister Mr. Narendra Modi
- IBEF
- July 24, 2023
Prime Minister Mr. Narendra Modi said India's banking industry is now one of the strongest in the world, due to the turnaround over the last nine years after scams broke the back of the sector in the previous United Progressive Alliance (UPA) regime.
During a virtual Rozgar Mela, he distributed over 70,000 appointment letters to new hires in the sector. He underlined that the next 25 years will be critical for the new recruits and the nation as they endeavour to make India a developed nation by 2047. He also stated that India will become one of the top three economies in the world.
"Becoming the world's third largest economy will be a monumental achievement for India," Mr. Modi highlighted, that it will increase employment possibilities in all sectors and raise the income of common residents.
In the banking sector, he stated that the asset quality of Public Sector Banks (PSBs) has greatly improved, with gross and net Non-Performing Assets (NPAs) at 4.97% and 1.24%, respectively, in March 2023. PSBs will make a record aggregate net profit of roughly US$ 12.80 billion (Rs 1.05 trillion) in 2022-23, nearly three times the amount in 2013-14.
"Banks were shielded from losses by acts such as the Bankruptcy Code. Furthermore, by tightening the grasp on those who robbed government property by attaching their property, banks notorious for losses and NPAs are now being discussed for their record profit," he stated.
The prime minister continued by saying that by guaranteeing savings up to US$ 6,096.40 (Rs. 5 lakh), more than 99% of accounts became safe, which restored public confidence in the banking system. He lauded the banking sector's efforts to open 500 million Jan Dhan Accounts, which aided in the transfer of funds into the accounts of crores of women during the pandemic.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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