New Delhi: The finance ministry on Friday asked state-run lenders to strengthen their balance sheets and tap the capital market. “Banks were told to strengthen their balance sheets by raising capital from the market,” said an executive aware of the developments, adding that the government want banks to push lending in the productive sectors of the economy.
In FY21, public sector banks (PSBs) recorded a net profit of ₹31,820 crore-the highest in the last five financial years. The government has not allocated any capital towards bank capitalisation in the current fiscal.
Financial Services secretary Sanjay Malhotra suggested that PSBs should explore more collaboration and that large banks should share their best practices with small lenders and guide them in areas where they need more expertise, said an official with Indian Banks’ Association (IBA).
Manthan 2022 was held to brainstorm with the top leadership of PSBs and unlock next-generation reforms while continuing with the EASE (Enhanced Access and Service Excellence), common reform agenda for all PSBs aimed at institutionalising clean and smart banking. The first PSB Manthan took place in 2014, and the last such exercise was held in 2019.
Malhotra also suggested that banks should explore strategies for long-term profitability and more customer-centric approach. He expressed confidence that PSBs will continue to strive and perform better on all metrics, including profitability, the IBA official said.
“Six groups were formed to look and suggest measures for key focus areas, including customer service, digitisation, HR incentives, governance and collaboration,” he said.
Stay connected with us on social media platform for instant update click here to join our Twitter, & Facebook
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
