Prime Minister Narendra Modi on Thursday extended his support to banks and said that he is standing behind them, as he spoke about the financial health of these institutions during a conference on seamless credit flow in Delhi.
Addressing the concluding session of the two-day symposium, Modi underlined the Centre's initiatives to improve the financial health of banks amid the coronavirus (Covid-19) pandemic. The Prime Minister said the banking sector of India is currently in a major milestone phase that can give a great push to the country's economy.
"The reforms made by the government in the banking sector in the last six-seven years, supported the banking sector in every way, due to which the banking sector of the country is in a very strong position today," he said at the session titled ‘Creating Synergies for Seamless Credit Flow and Economic Growth’.
"You might also feel that the financial health of the banks is in a much-improved condition now," PM Modi added.
The conference was organised by the finance ministry and was attended by representatives of various industries, banks and financial institutions. It was held to remove friction in credit flow to productive sectors of the economy battered by the Covid-19 pandemic.
{{/usCountry}}The conference was organised by the finance ministry and was attended by representatives of various industries, banks and financial institutions. It was held to remove friction in credit flow to productive sectors of the economy battered by the Covid-19 pandemic.
{{/usCountry}}Union finance minister Nirmala Sitharaman was also present at the conference.
He further said a dedicated Stressed Asset Management Vertical was formed in the country during the Covid period. "We have found ways to solve problems and challenges that were there before 2014. We addressed the problem of Non-Performing Assets (NPA). We recapitalised the banks and increased their strength," PM Modi also said.
"Today the capacity of the banks of India has increased so much that they can play a great role in giving new energy and a great push to the economy of the country and making it self-reliant. I consider this phase as a major milestone in the banking sector of India," he also said.
PM Modi also said that the banks should adopt the model of partnership leaving the traditional approver-applicant system.