Today marks the 78th independence day of the country. Prime Minister Narendra Modi in his 78th Independence Day speech from the Red Fort on Thursday said that his government's comprehensive reforms have strengthened India's banking sector and making it globally one of the strongest.
PM also in his speech addressed that the Indian banking sector was once mired in challenges, with rising non-performing assets (NPAs), stressed loans, and dwindling public trust but over the past decades, our targeted reforms have turned the situation around.
“Our banks were in trouble, but through sustained efforts and major reforms, they have emerged as some of the strongest in the world today,” said PM Modi.
"We have brought big reforms on ground. For the poor, middle class, deprived... for the aspirations of our youth, we choose the path to bring reforms in their lives. I want to assure the citizens of India that our commitment towards bringing reform is neither just for editorials, praise nor under compulsion. It is to strengthen the country," said Prime Minister in his Independence Day speech.
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He also added in his speech that some key initiatives such as the Insolvency and Bankruptcy Code (IBC), capital infusion into public sector banks, and enhanced governance standards played an important role in this revival.
These reforms not only reduced the NPA levels but also enhanced the financial stability of both commercial banks and non-banking financial companies (NBFCs).
PM Modi also highlighted about government's driven approach and said, "Reforms are not just for receiving praise or fulfilling editorial demands; they are the foundation for building a strong and resilient nation".
He also noted that these reforms aim to uplift all sections of society, from small traders to the MSME sector, and drive economic inclusiveness.
With declining NPAs - now below 3 per cent and the increased profitability, the banks have regained the confidence of depositors and borrowers alike.
The Reserve Bank of India (RBI) also recently confirmed that both scheduled commercial banks and NBFCs are showing positive trends, with strong capital adequacy and healthy financials.
