India needs major banks to meet economic shift: Finance Minister
ECONOMY & POLICY

India needs major banks to meet economic shift: Finance Minister

As the economy shifts to a different plane altogether, India will require more large lenders, such as the State Bank of India (SBI), said Finance Minister Nirmala Sitharaman on Sunday, keeping the government's message that Covid-19 vaccinations are leading to national recovery.

Sitharaman told the Indian Banks' Association (IBA) in Mumbai that they need to scale up banking to meet changing needs in light of recent economic and industry realities.

Sitharaman said that many new challenges have arisen as a result of the economy's shift to a different plane and the way the industry is adapting. It became clear that India requires not only more, but also larger banks.

Four or five additional banks, such as the State Bank of India (SBI), are required in India . In light of the recent shifting realities of the economy and industry, they need to scale up banking to meet changing requirements.

The National Asset Reconstruction Company Limited (NARCL), which received cabinet approval 10 days ago, is not a bad bank.

Nirmala Sitharaman, the Finance Minister, announced on Thursday a formal government guarantee on the securities receipts that the planned bad bank will issue to banks as it takes on non-performing assets from their books.

Sitharaman informed that the government will provide a guarantee of Rs 30,600 crore.

In Budget 2021-22, the Finance Minister said that the high level of provisioning by public sector banks for their stressed assets necessitates measures to clean up the bank books. The warranty will last for five years.

Image Source


Also read: Govt draws roadmap to make India a $1 trillion digital economy

As the economy shifts to a different plane altogether, India will require more large lenders, such as the State Bank of India (SBI), said Finance Minister Nirmala Sitharaman on Sunday, keeping the government's message that Covid-19 vaccinations are leading to national recovery. Sitharaman told the Indian Banks' Association (IBA) in Mumbai that they need to scale up banking to meet changing needs in light of recent economic and industry realities. Sitharaman said that many new challenges have arisen as a result of the economy's shift to a different plane and the way the industry is adapting. It became clear that India requires not only more, but also larger banks. Four or five additional banks, such as the State Bank of India (SBI), are required in India . In light of the recent shifting realities of the economy and industry, they need to scale up banking to meet changing requirements. The National Asset Reconstruction Company Limited (NARCL), which received cabinet approval 10 days ago, is not a bad bank. Nirmala Sitharaman, the Finance Minister, announced on Thursday a formal government guarantee on the securities receipts that the planned bad bank will issue to banks as it takes on non-performing assets from their books. Sitharaman informed that the government will provide a guarantee of Rs 30,600 crore. In Budget 2021-22, the Finance Minister said that the high level of provisioning by public sector banks for their stressed assets necessitates measures to clean up the bank books. The warranty will last for five years. Image SourceAlso read: Govt draws roadmap to make India a $1 trillion digital economy

Next Story
Infrastructure Urban

3i Infotech Reports Rs 7.25 Bn Revenue for FY25

3i Infotech, a leading provider of digital transformation, technology services and technology solutions, announced its consolidated financial results for the fourth quarter and full year FY25, ended on March 31st, 2025. The company maintained its growth momentum, displaying consistent progress for the 3rd consecutive quarter.In Q4 FY25, 3i Infotech reported revenue of Rs 1.87 billion, reflecting steady performance compared to Rs 1.81 billion in Q3 FY25 and Rs 1.97 billion in Q4 FY24. The company delivered strong profitability improvements, with gross margin growing by 14.8 per cent Q-o-Q and 1..

Next Story
Infrastructure Urban

Emerald Finance Joins Baya PTE to Boost SME Bill Discounting

Emerald Finance is a dynamic company offering a spectrum of financial products and services including its flagship Earned Wage Access (EWA) in India, has entered into a strategic partnership with Singapore-based Baya PTE through its Indian subsidiary. This collaboration aims to strengthen bill discounting services for Small and Medium Enterprises (SMEs), enabling faster access to working capital and improved cash flow management.The initiative is designed to support SMEs that supply to large corporates such as JSW Steel, Delhivery, and PVR INOX, among others. By facilitating timely invoice dis..

Next Story
Infrastructure Urban

BLS E-Services Crosses Rs 5 Bn Revenue Mark in FY25

BLS E-Services, a technology-enabled digital service provider, announced its audited consolidated financial results for the quarter and full year period ended 31 March 2025.Speaking about the performance and recent updates, Shikhar Aggarwal, Chairman, BLS E- Services said, “We are delighted to report a remarkable performance in FY25, as we achieved several milestones during the fiscal year. FY25 marked our highest-ever financial performance, as we surpassed Rs 5 billion milestone in Total Income during the year, which was reported at Rs 5.45 billion, a notable YoY growth of 76 per cent. The ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?