Scandal-plagued to record profits: PM Modi praises banking sector’s transformation
New Delhi: Prime Minister Narendra Modi on Saturday hit out at the previous regime under the United Progressive Alliance government, saying while it destroyed the banking sector with “scams" his dispensation has restored good financial health, with India now known for the sector’s strength. Addressing a Rozgar Mela after giving appointment letters to over 70,000 recruits virtually, PM Modi said a large number of them have been employed in the banking sector as he highlighted how it was “destroyed“ under the previous dispensation before his government took corrective measures. “Today, India is among the countries whose banking sector is considered to be the strongest," said he said while recalling the journey of the last nine years.
He dwelled on the ill impact of political selfishness on the sector in the past. He mentioned ‘phone banking’ of the past when loans were disbursed on the phone calls of the powerful. These loans were never repaid, he said.
These scams broke the back of the banking sector of the country, he said. He listed the measures taken after 2014 to retrieve the situation. He mentioned strengthening of management of the government banks, stress on professionalism and consolidation of small banks into large banks.
PM Modi said that by insuring deposits up to 5 lakhs, more than 99% of deposits have become safe leading to a renewed trust in the banking system. By acts like the Bankruptcy Code, banks were protected from losses. Furthermore, by tightening the grip over those who looted the government property by attaching their property, the banks known for losses and NPA are being discussed for their record profit.
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