Modi Govt turned around banking sector: Sitharaman

Finance minister Nirmala Sitharaman on Friday said the Modi government has turned around the banking sector through various reforms and improved governance which has led to banks recovering more than Rs 10 lakh crore from bad loans between 2014 and 2023.She said the Enforcement Directorate has investigated around 1,105 bank fraud cases, which resulted in the attachment of Rs 64,920 crore worth of proceeds of crime. As of December 2023, assets amounting to Rs 15,183 crore have been restituted to the Public Sector Banks (PSBs).We've turned banks from being 'NPA-laden nightmares' into 'Pillars of Jan Kalyan'.From having a ‘Twin Balance Sheet Problem’, we now have a ‘Twin Balance Sheet Advantage’.During FY 2023-24, Public Sector Banks recorded the highest-ever aggregate Net Profit of Rs 1.41 lakh crore, almost 4 times higher than Rs 36,270 crore in FY 2014, she said in a post on x.

The Banking sector is considered the backbone of a nation’s economy. Recently, India’s banking sector achieved a significant milestone by recording its highest-ever net profit, crossing ₹ 3 lakh crores.

This is in stark contrast to the situation before 2014 when @INCIndia-led…

— Nirmala Sitharaman (Modi Ka Parivar) (@nsitharaman) May 31, 2024

Agricultural Credit has increased 2.5-fold to ₹ 21.55 lakh crore in FY 2022-23 from Rs 8.45 lakh crore in FY 2014-15. The Kisan Credit Card (KCC) scheme has provided timely and hassle-free credit to farmers, with over 7.36 crore operative KCC accounts, Sitharaman said. Ms Sitahraman alleged that the UPA, dominated by dynastic parties, used banks for their own 'Parivar Kalyan' (family welfare). Despite 68 years of independence, less than 68% of the population had bank accounts, forcing the poor and middle class to rely on loan sharks, who charge high rates.