Agartala, May 26:
Amid growing global economic uncertainty triggered by geopolitical tensions, including the ongoing conflict involving Iran and the United States, the Indian banking sector remains robust and is poised for strong growth, Secretary of the Department of Financial Services under the Union Finance Ministry, M Nagaraju said in Agartala on Tuesday.
Addressing reporters on the sidelines of a Credit Outreach Programme organised by the State Level Bankers Committee at Rabindra Satabarshiki Bhawan, Nagaraju said both public and private sector banks in India were performing strongly with healthy capital reserves and sharply reduced non-performing assets (NPAs).
“Banks are doing very well, both public and private sector banks. We recorded excellent growth last year at around 15.9 per cent, which is among the highest ever in the Indian banking industry. This year too, we expect very good growth in the banking sector,” he said.
Nagaraju asserted that Indian banks were well-equipped to deal with emerging technological challenges, including cyber and software-related threats.
“We have no fear or worries about the robustness and resilience of banks. Banks are functioning well. Cyber and software-related risks are always there, but banks remain prepared and are generally one step ahead of such threats,” he said.
The senior official attributed the sector’s improved performance to regulatory reforms, fresh policy interventions and stricter banking guidelines introduced across the country in recent years.
“Today, compared to the Gross NPA levels of the past, the situation has improved significantly. Gross market-related stress has now reduced considerably. The main reason behind this improvement is the new policies, guidelines and regulations introduced in the banking sector across the country,” he said.
According to Nagaraju, NPAs in the banking sector have now fallen to nearly 0.4 per cent, marking a major turnaround from earlier years.
“All public and private sector banks have good capital strength. Our NPAs are much lower compared to the past and have declined further this year,” he said.
Highlighting initiatives taken under Prime Minister Narendra Modi, Nagaraju said the Centre had introduced a trade guarantee programme worth around Rs 2.25 lakh crore aimed at supporting small and medium enterprises facing economic disruptions arising out of “catastrophe issues”.
“This programme is going to provide significant support to small and medium enterprises across the country, including Tripura,” he added.
The Credit Outreach Programme was attended by Tripura Chief Secretary JK Sinha, bank officials and other dignitaries.
During the event, several banking services and branches were inaugurated virtually, while loans and corporate social responsibility funds of different banks were distributed among beneficiaries.
Nagaraju said outreach programmes held in Agartala and Udaipur in Gomati district of Tripura covered nearly 8,000 beneficiaries, with financial assistance amounting to around Rs 600 crore distributed among different sections of society.
On financial inclusion and social security initiatives, he said welfare schemes launched under the Modi government were completing 12 years on June 8 this year and had significantly expanded coverage among economically weaker sections.
“During these years, the government has been able to extend social security coverage to a very large number of people, most of them poor and residing in villages and semi-urban areas. This is a major achievement for the country and provides peace of mind to millions,” Nagaraju said.
