Despite stable rating outlook, some global banks collapsed, but Indian banks are doing well: FM
Indian banks are doing well because of professionalism in management, says FM Sitharaman
- Jul 1, 2023,
- Updated Jul 1, 2023 4:22 PM IST
Finance Minister Nirmala Sitharaman said on Saturday that the Indian economy has moved away from the twin-balance sheet problem of banks and corporates to twin-balance sheet advantage in economy because of the concerted efforts of the Modi government.
Despite stable rating outlook, some global banks collapsed but Indian banks are doing well because of professionalism in management, she said referring to collapse of Credit Suisse, Silicon Valley Bank among others
Profit of public sector banks increased to Rs 1.04 lakh crore in 2022-23, tripling from what it was in 2014, the minister said while inaugurating the corporate office of Punjab & Sind Bank in New Delhi.
The twin-balance sheet problem refers to deterioration in financial health of banks and corporates at the same time.
"As a result (of various initiatives of the government) I'm glad to say the problems of twin-balance sheets have gone away like the Reserve Bank observing it is a twin-balance sheet advantage that the Indian economy is benefiting from,", Sitharaman said
The minister said the term twin-balance sheet was heard after a long time and according to the Reserve Bank, the Indian economy is now benefiting from the twin-balance sheet advantage.
She said performance of public sector banks have improved on account of various initiatives taken by the Modi government since 2014. There was an improvement in all critical parameters like return on asset, net interest margin and provisioning coverage ratio, she added.
With inputs from PTI
Finance Minister Nirmala Sitharaman said on Saturday that the Indian economy has moved away from the twin-balance sheet problem of banks and corporates to twin-balance sheet advantage in economy because of the concerted efforts of the Modi government.
Despite stable rating outlook, some global banks collapsed but Indian banks are doing well because of professionalism in management, she said referring to collapse of Credit Suisse, Silicon Valley Bank among others
Profit of public sector banks increased to Rs 1.04 lakh crore in 2022-23, tripling from what it was in 2014, the minister said while inaugurating the corporate office of Punjab & Sind Bank in New Delhi.
The twin-balance sheet problem refers to deterioration in financial health of banks and corporates at the same time.
"As a result (of various initiatives of the government) I'm glad to say the problems of twin-balance sheets have gone away like the Reserve Bank observing it is a twin-balance sheet advantage that the Indian economy is benefiting from,", Sitharaman said
The minister said the term twin-balance sheet was heard after a long time and according to the Reserve Bank, the Indian economy is now benefiting from the twin-balance sheet advantage.
She said performance of public sector banks have improved on account of various initiatives taken by the Modi government since 2014. There was an improvement in all critical parameters like return on asset, net interest margin and provisioning coverage ratio, she added.
With inputs from PTI