Prime Minister Mr. Narendra Modi expressed that India’s banking industry has now become one of the strongest globally, following a remarkable turnaround over the past nine years. This progress came after the sector faced significant challenges due to scams during the previous United Progressive Alliance (UPA) regime.
In a virtual Rozgar Mela, the Prime Minister handed out over 70,000 appointment letters to newly recruited individuals in the banking sector. He emphasized the critical role these recruits and the nation will play in making India a developed country by 2047, as he envisions India becoming one of the world’s top three economies.
Mr. Modi highlighted that achieving the status of the world’s third-largest economy would be a monumental accomplishment for India. It would lead to increased employment opportunities across all sectors and raise the income levels of the general population.
Regarding the banking sector, the Prime Minister noted significant improvements in the asset quality of Public Sector Banks (PSBs). As of March 2023, the gross and net Non-Performing Assets (NPAs) stand at 4.97% and 1.24%, respectively. PSBs are expected to achieve a record aggregate net profit of approximately US$ 12.80 billion (Rs 1.05 trillion) in the fiscal year 2022-23, nearly three times the amount recorded in 2013-14.
Mr. Modi mentioned that measures such as the Bankruptcy Code shielded banks from losses, and stricter actions against those involved in misappropriating government property have transformed banks previously known for losses and NPAs into entities being recognized for their substantial profits.
The Prime Minister further highlighted that by ensuring deposits up to US$ 6,096.40 (Rs. 5 lakh), more than 99% of accounts have been safeguarded, successfully restoring public confidence in the banking system. He praised the banking sector’s efforts in opening 500 million Jan Dhan Accounts, which proved beneficial during the pandemic by facilitating the transfer of funds to the accounts of millions of women.
