Prime Minister Modi addresses the conference on creating synergies for seamless credit flow and economic growth, in New Delhi on November 18.
Prime Minister Narendra Modi on Thursday called on banks to support money and job creators and work proactively to improve the country’s balance sheet.
Addressing bankers at the symposium on creating synergies for seamless credit flow and economic growth, Modi said banks will now have to adopt a partnership model to help businesses thrive and loans to the loan “applicant”. Will have to move away from the idea of being “permissive”.
Modi said, “Banks will have to support the wealth creators and job creators… It is time that banks help the country with their balance sheets to enhance their balance sheets.”
He asked bankers to provide “customized solutions” to businesses and micro, small and medium enterprises (MSMEs). “Don’t wait for customers to come to the banks. You have to go to them,” he said.
Stating that banks have adequate liquidity and non-performing loans are at their lowest in five years, he said that despite the COVID-19 pandemic, the banking sector remains strong in the first half of the current financial year (April-September). . This has improved the outlook of the sector by international agencies.
He also said that the recently set up National Asset Reconstruction Company (NARCL) will help in resolving stressed assets worth Rs 2 lakh crore.
Modi said, “Reforms in the last six-seven years have put the banking sector in a strong position today. We have addressed non-performing assets (NPAs) of banks, recapitalized banks, brought bankruptcy laws and Debt Recovery Tribunal has been strengthened.”
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