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    Banks critical to India’s growth in an uncertain world, says FM Nirmala Sitharaman

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    By Joel Rebello

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    Banks critical to India's growth in an uncertain world, says FM Nirmala Sitharaman

    PTIUnion Finance Minister Nirmala Sitharaman

    With uncertainty remaining a defining feature of the global landscape the role of banks becomes even more critical to be engines of growth in India by providing the finance and support that businesses and entrepreneurs need to navigate for volatility also drive innovation, finance minster Nirmala Sitharaman said. She said financial institutions must maintain strong balance sheets to fund significant investments in infrastructure, industry and also for MSMEs and create partnersholips with NBFCs to reach credit to the underserved.The minister acknowledged that uncertainties have increased globally with some sectors and countries being impacted more than others.”As India’s economy grows so does the demand for credit and innovative financial products and capital expenditure. So financial institutions like Bank of Maharashtra (BoM) therefore must maintain strong balance sheets to fund significant investments in infrastructure, industry and also in innovation,” Sitharaman said in her address at the 91st Foundation Day celebration for the bank.Sitharaman said public sector banks must look beyond retail banking towards lending to small and medium enterprises and projects of national importance.Live Events”Public sector banks are needed to engage proactively with NBFCs on co-lending particularly for priority sector lending. So these partnerships help enhance credit flow to the underserved sectors ensuring that funds reach the ultimate beneficiaries at an affordable cost,” Sitharaman said.Speaking at the same event financial services secretary M Nagaraju commended public sector banks for posting a record Rs 1.78 lakh crore profit in fiscal ended March 2025.”From a time when a majority of banks were under PCA (prompt corrective action) to now when public sector banks have overtaken private sector banks for the firdt time, the progress has been commendable,” Nagaraju said praising the professionalism of banking executives.PCA banks were placed under restrictions by Reserve Bank of India (RBI) between 2015 and 2018 due to weak financial metrics like asset quality or low capital base.He said with high capital ratio, low non performing assets and strong balance sheets public sector banks can now play a bigger role both in India and abroad.He said besides MSMEs banks have to increase lending education loans to support the future of college going students.Sitharaman also inaugurated BoM’s new corporate office in Pune.The bank plans to add 321 branches in the next 18 months and recruit 350 senior executives in the next one year. Earlier this calender year the bank started its new Gift City international branch in Gandhinagar.Add as a Reliable and Trusted News Source Add Now!
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