PM urges banks to help wealth and job creators
PM nudged bankers to offer ‘customised solutions’ to MSMEs and businesses
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 raise 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.
At least 15.33 million Indians lost their jobs in May, erasing gains achieved since July 2020, a situation that may adversely affect consumer spending and economic revival.
The number of people employed fell to 375.45 million in May from 390.79 million in April, according to the Centre for Monitoring Indian Economy (CMIE). In April and May, the number of people employed in salaried and non-salaried jobs fell by almost 23 million as the second wave of the pandemic infected millions of Indians, and states imposed lockdowns.
However, hiring activity in India recorded an upswing subsequently, with August seeing an 89% year-on-year growth. According to Naukri JobSpeak, hiring index was at 2673 last month, surpassing pre-pandemic levels of August 2019 by 24%. Hiring was led by IT sector companies, growing 79% in August compared to August 2019. Jobs in the education sector also marked strong recovery, growing 102% and surpassing pre-pandemic levels. Other sectors that have now exceeded pre-pandemic numbers are real estate (15%), telecom (13%), medical/healthcare (8%), and pharma/biotech (7%).