Finance Minister Nirmala Sitharaman on Wednesday said that the banks must pass on rate cut benefits and increase the disbursal of loans to boost liquidity.
Finance Minister Nirmala Sitharaman on Wednesday said that the banks must pass on rate cut benefits and increase the disbursal of loans to boost liquidity. The banks have been assured that they have to become more professional in decision-making, Nirmala Sitharaman Nirmala Sitharaman said at an ASSOCHAM event. Adding, she said that the decisions must not be delayed for fear of vigilance later. Earlier, at the same event, Prime Minister Narendra Modi too had assured the banks that the banks are now free to take bold decisions. He also said that the right business decisions taken by bank officials would not be questioned.
On the ongoing stress in the NBFC sector, Nirmala Sitharaman also said that the companies today have saddled themselves with ‘not-so-good’ quality of assets. The government has given a provision to pool NBFC assets and lend to them, she added. On MSMEs, she said that any help needed by the small business will be provided to them by the government.
Earlier, Prime Minister Narendra Modi had said that the banking sector has become strong after the government announced a slew of measures. As an outcome of the government’s efforts, 13 banks have started to make a profit again, Narendra Modi also said. “Six banks are now out of PCA (prompt corrective action). We have also accelerated the process of bank mergers. Today banks are spreading their network across the country and are striving towards making a global mark for themselves.” The government merged banks to provide a centralized system and provided 2.5 lakh crore rupees for recapitalisation. The Insolvency and Bankruptcy Code (IBC) has promised a return of about three lakh crore rupees.