Citing Q2 growth of 7.6 per cent in FY24, the Union finance minister said the country had the most significant growth making it the fastest-growing economy.
Union Minister of Finance and Corporate Affairs Nirmala Sitharaman reviewed the performance of Public Sector Banks (PSBs) with their Chairmen and Managing Directors via virtual mode in New Delhi today.
The review meeting was also attended by Union Minister of State for Finance Bhagwat Kisanrao Karad and Secretary, Department of Financial Services (DFS), Debasish Panda, along with senior officials of the DFS.
During the review meeting, Sitharaman assessed various steps taken by PSBs in implementing pandemic-related measures initiated by the Government of India and Reserve Bank of India (RBI) and readiness to tackle possible future disruptions that may occur due to the ongoing variant of the Covid-19 pandemic.
While appreciating the success of ECLGS, the Finance Minister said that it is not time yet to rest on our achievements and that our collective efforts must strive towards supporting sectors that face interruption due to continued onslaught of Covid-19 pandemic.
Sitharaman also conveyed to the bankers to continue supporting agriculture sector, farmers, retail sector and MSMEs.
The FM noted that business outlook is progressively improving in spite of the headwinds from global development and Omicron spread.
The Finance Minister underlined that contact intensive sectors may require more support to help them fight against the pandemic.
On the credit demand front, the Finance Minister said that credit demand is expected to pick up on account of growth in retails segments, improvement in overall macroeconomic prospects and improving financial health of borrowers.
During the review meeting, bankers pointed out that PSBs have observed an improvement in the repayment culture in the country.
PSBs have performed well and, supported by various policy measures, provided the required impetus to the economy for coming out of shackles of pandemic induced stress.