INSUBCONTINENT EXCLUSIVE:
Union Finance Minister Nirmala Sitharaman (Photo: PTI)5 min read Last Updated : Oct 08 2024 | 9:38 PM IST
Scheduled commercial banks
should avoid engaging in long-term, high-risk funding and instead concentrate on mobilizing deposits, retail lending, and supporting
medium-term projects to prevent a recurrence of non-performing assets (NPA) crisis caused by asset-liability mismatches, Finance Minister
Nirmala Sitharaman said on Tuesday
She emphasized that institutions like NaBFID (National Bank for Financing Infrastructure and Development) are better positioned to finance
They will have to gather deposits and lend
I am not saying that core businesses should get confined only to that
non-performing assets (NPAs) and net NPAs ratios of scheduled commercial banks have fallen to a multi-year low of 2.8 per cent and 0.6 per
situation and together with it to aggravate it was also this phone banking, where cronies were being given loans, which you (banks) couldn't
So, banks will have to be conscious of what they do and how they do it, and essentially, those which are very much in the bank board's hands
she said.
Although she refrained from directly commenting on the ongoing issue with Sebi chairperson Madhabi Puri Buch, she emphasized
that there is a lot to be looked into in terms of facts, which are coming out on the matter
herself in the eye of the storm, with the Congress party and US-based short-seller Hindenburg Research questioning her objectivity in the
Adani probe and allegations of conflict of interest while dealing with corporate files
Buch and her husband have rebutted all the allegations.
Meanwhile, Sitharaman is of the opinion that the CPI basket and the WPI basket
don't seem to have much of a commonness
Nageswaran has highlighted that monetary policy is a short-run macro aggregate demand management tool, which cannot manage aggregate supply
shock and food shocks are predominantly supply shocks
However, RBI Governor Shaktikanta Das has highlighted that with food inflation comprising 46 per cent of the consumption basket, the
pressures from it cannot be ignored by the Monetary Policy Committee (MPC).
Commenting on the issue of freebies being given by various
want freebies, but you cannot in that name deny the poor the help that they need to get for some more time until they come out of the
budgetary and fiscal situation.
Meanwhile, the finance minister also highlighted the work done by digital investment platforms
Post-pandemic Indian middle class have become risk-takers as they have turned towards the equity markets for investing their savings instead
enter into the market rather than comfortably sit in low-interest-paying deposit accounts
I am not suggesting that this is better or that is better
at a time when Indian banks are struggling to mobilize deposits with the RBI repeatedly directing them to adopt innovative ways to attract
deposits.
She also urged banks to participate in the PM internship programme that has been launched
But by this internship, we honestly believe the youth of India will be able to get a picture of what is expected of them
said.
Additionally, Sitharaman also urged banks to plan about cyber security risks
Published: Oct 08 2024 | 8:22 PMIST
