Prime Minister Narendra Modi on Friday said that the banking sector has become strong after the government announced a slew of measures.
Prime Minister Narendra Modi on Friday 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 said at an ASSOCHAM event. The banks are now free to take bold decisions, he also said, adding that the right business decisions taken by bank officials would not be questioned. “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.
On India meeting the ambitious target of $5 trillion economy by 2024, Narendra Modi said that the goal is achievable. “When I set the $5 trillion target, I was aware of the negative campaign against it. The $5 trillion target is not spontaneous. It is being debated for the last five years. It comes after various leading names have cast aspersions on the feasibility of the goal. Just days back IMF Chief Gita Gopinath said that India’s $5 trillion economy goal appears difficult to meet amid the ongoing slowdown in the economy. The Indian economy is undergoing a slowdown on account of both domestic and global factors. In Q2FY20, GDP grew at a dismal 4.5 per cent.
He also said that the government is working to decriminalise provision of the Companies Act to make it easier to do business in the country. Modi said the time taken to register companies has been cut to a few hours from months and better infrastructure has enabled the cut in turnaround time at airports and ports.