Union Finance Minister Nirmala Sitharaman on July 1 urged banks to not lose momentum and not look the other way from efficiency. She said banks must follow best corporate governance practices and adhere to regulatory norms.
Lenders must ensure proper liquidity management and maintain robust asset liability risk management, the minister said while inaugurating the corporate office of Punjab & Sind Bank in New Delhi.
She also highlighted that the Indian economy has moved away from the twin-balance sheet problem of banks and corporates to twin-balance sheet advantage because of the concerted efforts of the Modi government. The twin-balance sheet problem refers to deterioration in financial health of banks and corporates at the same time.
Profit of public sector banks increased to Rs 1.04 lakh crore in 2022-23, tripling from what it was in 2014, she said.
"As a result
Sitharman told banks that stand-up and start-up India schemes need to be supported and that banks should also give prominence to Mahilaa Bachat Patra. She requested banks to approach more women to avail of the Mahila Savings Scheme.
The minister also requested banks to ensure that priority sector lending happens. “Banks should do credit outreach…We need to be present in the border states and cities as well,” she said.
Banks must ensure records and systems are all digitised, they can also use artificial intelligence to increase efficiencies, she said. She also advised lenders to have drills and adequate firewalls for digital safety.
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