 "Modi")
Prime Minister Narendra Modi on Thursday exhorted banks to support wealth and job creators, and work proactively to improve the country's balance sheet.
Addressing bankers at the symposium to Build Synergy for Seamless Credit Flow and Economic Growth', Modi said banks have to now adopt a partnership model to help businesses thrive and move away from the idea of being a loan "approver" to a loan "applicant".
"Banks have to support wealth creators and job creators... It is time that banks, along with their own balance sheets, help increase the balance sheet of the country," Modi said.
"When someone runs away with bank loans, it is discussed a lot. But when a daring government brings them back, nobody discusses it. More than Rs 5 trillion have been recovered out of the lakhs and crores of rupees that were struck during the previous govts' regime," added PM Modi.
He nudged bankers to offer "customised solutions" to businesses and micro, small and medium enterprises (MSMEs). "Don't wait for customers to come to banks. You have to go to them," he said.
Stating that banks have adequate liquidity and non-performing loans are lowest in five years, he said despite the COVID-19 pandemic, the banking sector has remained strong in the first half (April-September) in current fiscal. This has led to an upgrade in sector outlook by international agencies.
He also said that the recently set up National Asset Reconstruction Co (NARCL) would help resolve Rs 2 trillion of stressed assets.
"Reforms in last six-seven years have led to banking sector in a strong position today... We have addressed non-performing assets (NPAs) of banks, recapitalised banks, brought bankruptcy laws and strengthened debt recovery tribunal," Modi added.
He emphasised that the banking sector must take advantage of the big reforms and schemes as well as the big pool of data that has been created in the country.
"The scale at which corporates and start-ups are coming forward today is unprecedented. In such a situation, what can be a better time to strengthen, fund, invest in India's aspirations? Today, when the country is working so hard on financial inclusion, it is very important to unlock the productive potential of the citizens," Prime Minister emphasised.
Referring to a banking sector research he said that it has come to the fore that states with more Jan Dhan accounts have relatively lower crime rates.
Mentioning the Production-Linked Incentive (PLI) scheme Prime Minister said the manufacturers should increase their capacity manifold in order to transform themselves into a global company.
Underlining the reforms made by the centre to improve the financial health of banks, Prime Minister said, "Reforms brought in by the government in the banking sector and support to the sector in every way in the last 6-7 years have led to the country's banking sector being in a very strong position today. Banks' financial health is in a much better position now."
"We found roads to solution for all issues before 2014. We addressed the NPAs issue, recapitalised banks, enhanced their strength, brought reforms like IBC, reformed laws, strengthened Debt Recovery Tribunal.
The two-day conference is being organised by the Ministry of Finance from November 17. The conference has been attended by top officials from Ministries, Banks, Financial institutions and Industry representatives.
