Agartala, May 26 (IANS) Amid growing global economic uncertainty triggered by geopolitical tensions, including the ongoing conflict involving Iran and the United States, the Indian banking sector remains strong, stable, and poised for sustained growth, Secretary of the Department of Financial Services (DFS) under the Union Finance Ministry, M. Nagaraju, said here on Tuesday.
Addressing the media on the sidelines of a Credit Outreach Programme organised by the State Level Bankers Committee at Rabindra Satabarshiki Bhawan in Agartala, Nagaraju said both public and private sector banks in India were performing robustly with healthy capital reserves and significantly 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-prepared to tackle emerging technological and digital 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 IAS officer attributed the improved performance of the banking sector to a series of regulatory reforms, fresh policy interventions, and stricter banking guidelines introduced across the country over the past few 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 remarkable turnaround from previous 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 added.
Highlighting initiatives taken under Prime Minister Narendra Modi’s leadership, Nagaraju said the Centre had introduced a trade guarantee programme worth around Rs 2.25 lakh crore aimed at supporting small and medium enterprises (SMEs) 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 J.K. Sinha, senior bank officials, and several other dignitaries.
During the programme, a number of banking services and branches were inaugurated virtually, while loans and corporate social responsibility (CSR) funds from different banks were distributed among beneficiaries.
Nagaraju said that the outreach programmes held in Agartala and Udaipur in Tripura’s Gomati district covered nearly 8,000 beneficiaries, with loans amounting to over Rs 600 crore distributed among various sections of society.
Speaking on financial inclusion and social security initiatives, he said that welfare schemes launched under the PM Modi government would complete 12 years on June 8 this year and had significantly expanded social security coverage among economically weaker sections of society.
“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.
–IANS
sc/dan