Insolvency and Bankruptcy Code (IBC) has successfully facilitated the public sector banks (PSBs) recuperate over ₹1 lakh crore in the three quarters of the running fiscal year. In view of this, Finance Minister Piyush Goyal projected confidence that lending to micro, small and medium enterprise, agriculture and housing sector would make the banks more profitable in days to come.
He encouraged state-run banks to increase lending to MSMEs, agriculture and housing sectors and also guaranteed them all possible support from central government.
Finance Minister said, “We have discussed how working of IBC has helped them recover large amount of money both through the IBC mechanism and NCLT (National Company Law Tribunal), and in many cases without having going to NCLT through the pressure that is built up on the large borrowers,”
He added, that there are efforts in progress to ensure turnaround of borrowing businesses and consequently turnaround of the banks.
Goyalji also noted that the public sector banks will be provided with full support and encouraged to take genuine commercial decisions. He stated that leaving no pardon to anyone entailing in bad practices, bona fide actions of the banks are protected by the law.
He further pointed out expectations from the banks regarding higher level of reliability in terms of capacity building, use of technological advancements, insurance standards and governance.
Minister stated, “We would like them to look at ways to improve delivery of services to our farmers. We would like them to be more proactive in encouraging retail businesses. We are going to see a far more vibrant, a far more proactive and a far far more profitable banking sector in the days to come,”
He said the ultimate goal of this government is financial inclusion of every Indian in every part of the country, to achieve this goal, he pointed out that there are discussions that are being held between the banks and the RBI governor Shashikant Das to ensure more consumer friendly, profitable and efficient operations.
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