Independence Day 2024: Indian banks powering formal economy, among 'strongest in the world,' says PM Modi

Prime Minister said that earlier the banking sector was going through tough times, but there is growth in the segment.

Prime Minister Narendra Modi praised India's banking sector that has given strength to the formal economy. In this address to the nation from the ramparts of historic Red Fort, he said Indian banks are among the few that are strong globally, owing to major reforms undertaken by his government.

Prime Minister said that earlier the banking sector was going through tough times, but there is growth in the segment.

"Just imagine what was the condition of our banking sector. There was no growth, no expansion, and there was no faith (in the banking system)," he added.

PM Modi said his government introduced big reforms in the sector that pushed the banking system to compete globally. "Our banks were going through difficult times...We took big reforms to make the banking sector strong. Today, because of the reforms, our banks are among the few strong banks globally," PM asserted.

He emphasised that a strong banking system is crucial to fulfil the needs of the middle class, farmers, homebuyers, startups, and the MSME sector.

PM Modi-led government at the Centre has hinted at diluting its stake in at least two public sector banks. In fact, both the previous United Progressive Alliance (UPA) and then the successive National Democratic Alliance (NDA) regimes have flashed this as the top item on reforms agenda.