PM Modi exhorts banks to support wealth, job creators; increase country's balance sheet

NEW DELHI: Prime Minister Narendra Modi on Thursday exhorted banks to support wealth and job creators, and work proactively to improve the country's balance sheet.

Addressing bankers at the symposium to ‘Build Synergy for Seamless Credit Flow and Economic Growth', Modi said banks have to now adopt a partnership model to help businesses thrive and move away from the idea of being a loan "approver" to a loan "applicant".

"Banks have to support wealth creators and job creators. It is time that banks, along with their own balance sheets, help increase the balance sheet of the country," Modi said.

He nudged bankers to offer "customised solutions" to businesses and micro, small and medium enterprises (MSMEs).

"Don't wait for customers to come to banks. You have to go to them," he said.

Stating that banks have adequate liquidity and non-performing loans are lowest in five years, he said despite the COVID-19 pandemic, the banking sector has remained strong in the first half (April-September) in current fiscal.

This has led to an upgrade in sector outlook by international agencies.

He also said that the recently set up National Asset Reconstruction Co (NARCL) would help resolve Rs 2 lakh crore of stressed assets.

"Reforms in last six-seven years have led to banking sector in a strong position today. We have addressed non-performing assets (NPAs) of banks, recapitalised banks, brought bankruptcy laws and strengthened debt recovery tribunal," Modi added.