Massive Improvement In Financial Health A Milestone In Banking Sector, Says PM Modi

The two-day conference has been attended by senior officials from Ministries, Banks, Industry representatives and Financial institutions. 

Massive Improvement In Financial Health A Milestone In Banking Sector, Says PM Modi: File Image

New Delhi: Talking about the reforms that his government has made in the financial sector over the last 6-7 years, Prime Minister Narendra Modi on Thursday said the banking system in the country is in a very strong position today.   

Addressing the closing session of the conference on 'Creating Synergies For Seamless Credit Flow And Economic Growth' organised by the Department of Financial Services, Ministry of Finance, the Prime Minister said, "You might have realised that the financial health of Indian banks has massively improved in recent times. I consider this improvement to be a major milestone in India's banking sector. We have found ways to solve all the problems that hindered the nation's banking sector pre-2014." 

Hitting out at the previous government, the Prime Minister said, "During the previous government's rule, banks were taken for a ride by some. However, our government has successfully recovered Rs 5 lakh crore in the past five years, which has helped bring down our Non-Performing Assets (NPAs) to a great extent."

The Prime Minister added, "We addressed the problem of NPAs, worked on recapitalising banks and enhancing their strength as well as brought in reforms such as IBC (Insolvency & Bankruptcy Code) and strengthened the Debt Recovery Tribunal." 

He also cited a research related to the banking sector that revealed that crime rates have gone down in states where more JanDhan accounts were opened. He said, "Today, when the country is working so hard on financial inclusion, it is very important to unlock the productive potential of citizens. The scale at which corporates and start-ups are coming forward today is unprecedented."

Advising the bankers present at the event, PM Modi said, "What's a better time to strengthen India's aspirations by funding them than now. You would be the approver and the person sitting in front of you would be the applicant. You would be the giver and the applicant would be the acceptor. Banks need to adopt the model of collaboration and co-existence. Today, Indian banks are so strong that they can play a major role in energising the country's economy and make India 'Self-Reliant'. 

The two-day conference has been attended by senior officials from Ministries, Banks, Industry representatives and Financial institutions.