+
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

Related Stories

Gold Stories

Next Story
Real Estate

Adani begins construction of Dharavi rehabilitation homes

Construction of rehabilitation homes for eligible Dharavi residents has commenced at the 22-acre Matunga railway site, following a Bhoomi Poojan ceremony performed by Pranav Adani, Director, Adani Enterprises (AEL). The project, being implemented by Adani Navbharat Developers (ANDPL), envisages 10 towers comprising 10,432 rehabilitation apartments and 1,379 commercial and industrial units.Under the in-situ rehabilitation scheme, eligible residents will receive homes measuring 350 sq ft. Residents from Sectors 6 and 1 will be accommodated at Matunga first, followed by nearly 4,500 apartments fo..

Next Story
Real Estate

Adani begins construction of Dharavi rehabilitation homes

Construction of rehabilitation homes for eligible Dharavi residents has commenced at the 22-acre Matunga railway site, following a Bhoomi Poojan ceremony performed by Pranav Adani, Director, Adani Enterprises (AEL). The project, being implemented by Adani Navbharat Developers (ANDPL), envisages 10 towers comprising 10,432 rehabilitation apartments and 1,379 commercial and industrial units.Under the in-situ rehabilitation scheme, eligible residents will receive homes measuring 350 sq ft. Residents from Sectors 6 and 1 will be accommodated at Matunga first, followed by nearly 4,500 apartments fo..

Next Story
Equipment

Seven Propel 470 HEV electric tippers go to work on coal haulage in Chhattisgarh

Propel EV, the electric mobility division of Propel Industries and India's No. 1 electric tipper brand, has deployed seven 470 HEV electric trucks with a leading coal-haulage contractor at one of India's largest opencast coal mines in Chhattisgarh. The trucks are in daily operation, moving coal on continuous haul cycles in one of the most demanding applications in Indian mining.Why Electric - and Why CoalCoal haulage runs round the clock: heavy loads, long haul cycles, steep ramps and abrasive dust. It is also where diesel hurts most. Engines run continuously, fuel is the largest single operat..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code