Prime Minister Narendra Modi on Thursday exhorted banks to support wealth and job creators, and work proactively to improve the country's balance sheet.
Underlining the reforms made by the Centre to improve the financial health of banks, PM Modi said the banking sector of India is currently in a major milestone phase that can give a great push to the country's economy.
Addressing the concluding session of the conference on "Creating Synergies for Seamless Credit Flow and Economic Growth", PM Modi said: "The reforms made by the government in the banking sector in the last 6-7 years led the banking sector of the country towards a very strong position today. The financial health of banks is now in a much-improved condition. We brought reforms like IBC, reformed many laws, empowered Debt recovery tribunal."
He said a dedicated Stressed Asset Management Vertical was also formed in the country during the COVID-19 period.
"We have found ways to solve problems and challenges that were there before 2014. We addressed the problem of Non-Performing Assets (NPA). We recapitalized the banks and increased their strength. Today the capacity of the banks of India has increased so much that they can play a great role in giving new energy and a great push to the economy of the country and making it self-reliant. I consider this phase as a major milestone in the banking sector of India," he added.
Addressing bankers at the symposium to 'Build Synergy for Seamless Credit Flow and Economic Growth', PM Modi said banks have to now adopt a partnership model to help businesses thrive and move away from the idea of being a loan "approver" to a loan "applicant".
"Banks have to support wealth creators and job creators... It is time that banks, along with their own balance sheets, help increase the balance sheet of the country," Modi said.
He nudged bankers to offer "customised solutions" to businesses and micro, small and medium enterprises (MSMEs). "Don't wait for customers to come to banks. You have to go to them," he said.
He also said that the recently set up National Asset Reconstruction Co (NARCL) would help resolve Rs 2 lakh crore of stressed assets.
"Reforms in last six-seven years have led to banking sector in a strong position today... We have addressed non-performing assets (NPAs) of banks, recapitalised banks, brought bankruptcy laws and strengthened debt recovery tribunal," PM Modi added.
The two-day conference is being organised by the Ministry of Finance from November 17. The conference has been attended by top officials from Ministries, Banks, Financial institutions and Industry representatives.
(With inputs from ANI and PTI)
