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Finance Minister Nirmala Sitharaman Highlights Robust Health of Indian Banks Amid Global Turmoil
December 06, 2023
In response to concerns about the global banking landscape, Finance Minister Nirmala Sitharaman reassured on Tuesday that Indian banks remain resilient and robust. She shared that by March 31, 2023, a substantial Rs 33,801 crore had been recovered from wilful defaulters, showcasing ongoing efforts to combat defaults and reclaim funds.
During a session in the Rajya Sabha, Sitharaman emphasized the positive trend in India, where not only are non-performing assets (NPAs) decreasing, but profit margins are also on the rise. Despite major bank collapses in the USA, Switzerland, and Germany last year, she pointed out that India continues to exhibit a consistent reduction in NPAs and an increase in profit margins.
For the fiscal year 2022-23, scheduled commercial banks reported a net NPA ratio of 0.94%, with public sector banks achieving a ratio of 1.24%. Sitharaman highlighted proactive measures, including legal actions against defaulters, leading to the recovery of Rs 33,801 crores. Legal suits were filed for recovery in 13,978 loan accounts, and actions under the SARFAESI Act and FIRs were initiated.
The Finance Minister also noted the recovery of assets under the PMLA, with Rs 15,186.64 crores confiscated by the ED as of December 1, 2023. She highlighted successful cooperation in the recovery of Rs 104.02 crores by PMC Bank and the confiscation of Rs 692.89 crores under the Fugitive Economic Offenders Act, 2018. Sitharaman concluded by referencing the misuse of ‘phone banking’ during the UPA regime, emphasizing the government’s commitment to maintaining the health of the banking sector.
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