The Indian banking system, which was once ran losses, is now in profit and credit has seen record growth, Prime Minister Narendra Modi said on April 1.
“India’s banking system is strong and sustainable globally. The banking system which was once in loss is now in profit and credit has seen record growth,” Modi said at an event in Mumbai, commemorating 90 years of the Reserve Bank of India (RBI).
Also read: RBI@90: Need to keep an eye on the developments coming from cashless economy, says PM Modi
An infusion of Rs 3.5 lakh crore was done to capitalise and improve the condition of public sector banks (PBS). “Gross NPAs of banks came down from 11.25 percent in 2018 to 3 percent in September 2023 and credit growth of banks is nearly at 15 percent,” Modi said, referring to non-performing assets.
Also read: Stability in G-Secs has added to financial market resilience, says FM Sitharaman
Highlighting the role of the Insolvency and Bankruptcy Code (IBC), he said it had resolved around Rs 3.25 lakh crore loans.
The Prime Minister said Kisan Credit Cards gave the rural economy a big push even as the co-operative banks played a role in inclusion, and were "an important segment under RBI’s supervision”.
Finance minister Nirmala Sitharaman also spoke at the event, saying the stability in government securities yields had contributed to overall financial market resilience and investors confidence in the Indian economy.
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