“Our fast growing economy needs to develop into a developed society and to do that, it is imperative that we must also be an ethical society. In evolution of India into a more ethical society, the last five years will go down in history as a turning point”, said Finance Minister Arun jaitley while addressing the conference on ‘Reforms Journey for EASE in Public Sector Banks’, organised by the Indian Banks’ Association at the national capital today.
Stressing at the reforms of PSB he said that culmination of reforms was long overdue in the banking system. “Some reforms are born-out of compulsion while there are many others which are born-out of conviction. For the Government, it was a combination of both”, he admitted.
Jaitley further uttered that the worst in banking system is now behind us. “Public Sector Banks are the lifeline of Indian economy. If their health is not good, then economy at large will suffer. The growth of our economy depends on PSBs ability to flow credit to the market and maintain sufficient liquidity. If that doesn’t happen, the economy as a whole will shrink”, he added further.
Jaitley also meanwhile focussed on the success of Insolvency & Bankruptcy Code (IBC), saying that everybody concedes that IBC is a success story. “It has brought back close to Rs. 3 lakh crore back into the banking system. All institutions have played a role in the success of the IBC”, he added.
The last two or three quarters, the NPA curve is going down. The NPA didn’t go-up because banks made some strong decisions in the recent past. The NPA went-up because of truthful disclosure. There was no hiding under the carpet any more”, Jaitley asserted on the issue of NPAs in the PSBs.
Praising the right environment for growth available with the PSBs, Jaitley signed off saying that with the functional autonomy available with PSBs, the future years will see a far greater contribution by PSBs as far as the national economy is concerned. The PSB banks are now functioning under a competitive environment.
From a commercial point of view, you are still bound by certain restrictions. Your public and social responsibility is much higher than what the private sector competitors have with them. And that is a responsibility naturally invested in you. PSBS don’t enjoy the same level of freedom that private sectors banks enjoy. Despite these obvious restraints, these EASE norms will prove to be an important milestone as far as PSBs are concerned”, he signed off.
COURTESY:- NEWS BHARATI