Finance Minister Nirmala Sitharaman on Sunday, while addressing the 74th Annual General Meeting of the Indian Bank’s Association (IBA) in Mumbai said that the banks will derive benefits of a vibrant economy going forward, however, India needs not only more but bigger lenders to meet the changing requirements owing to the new challenges that have emerged recently.
According to Sitharaman, the way in which the economy is shifting to a different plane altogether and the way industry is adapting, many new challenges have risen. It came to fore that India needs not only more, but bigger banks,” said Sitharaman. “We need 4-5 more SBIs in this country,” she added.
Few days back, Finance Minister Nirmala Sitharaman announced the setting up of the National Asset Reconstruction Company Ltd (NARCL) which is mandated to resolve India’s bad loan woes within five years, beyond which the guarantee to be issued by the government would expire. The Cabinet had approved a government guarantee of Rs 30,600 crore to be provided for the security receipts issued by the NARCL to buy bad loans of lenders.
Throwing light on the NARCL, Sitharaman thanked Indian Bank Association for setting up the National Asset Reconstruction Company Ltd (NARCL). She went on to add that NARCL is not a “bad bank”, as is the case in the United States, because it is purely bank driven.
She also threw light on the need for scaling up the banking to meet changing requirements in light of the shifting recent realities of the economy and industry.
“Long term future of Indian banking is going to be largely driven by digitized processes. Beyond amalgamated banks, different banks who are not amalgamated, systems of different banks should be in a way that they should be able to talk to each other,” she said.
Read all the Latest News, Breaking News and Coronavirus News here