Health of the Indian Banking Sector Remains Strong, Government Policies Proving Effective: Leading Bank Executives

New Delhi, Dec 12 (NationPress) Following the fading of Rahul Gandhi’s accusations concerning the dire state of Indian banks, especially public sector banks (PSBs), Dinesh Khara, the former Chairman of the State Bank of India (SBI), stated on Thursday that the country's banking sector is excelling in all aspects, including capitalization and asset quality.
In an interview with IANS, Khara emphasized that the banking sector in India is operating in a highly professional and efficient manner, ensuring a robust health for the sector.
He further explained that all banks have been adequately capitalized, leading to capital adequacy that meets the necessary criteria.
“Thanks to the enhanced asset quality of banks, the overall health of the sector remains satisfactory, effectively supporting the country's economic growth,” he stated in the interview.
Khara highlighted the positive perception of India on a global scale, noting that under Prime Minister Narendra Modi's leadership, the country's acceptance has significantly increased worldwide.
“The situation has improved further post the G20 Summit, with India being recognized as a responsible leader in South Asia,” he remarked.
When questioned about the morale of employees potentially being affected by politically charged statements, Khara noted that the morale of bank employees is shaped by the leadership within the sector.
“It is also understood that bank employees recognize their right to express their opinions in a democracy,” he added.
“Employees in banking are well-informed about their institutions. Thus, I believe they do not require further insights to comprehend the current state of the banking sector,” he said.
His remarks followed Union Finance Minister Nirmala Sitharaman's strong rebuttal of claims made by Leader of Opposition Rahul Gandhi regarding the performance of India’s banking sector, particularly PSBs, emphasizing that during the tenure of the United Progressive Alliance (UPA), PSBs were misused as 'ATMs' for their 'cronies and unscrupulous businessmen'.
Rajiv Kumar Bakshi, former Chairman of Bank of Baroda, also conveyed to IANS that the banking sector's condition is currently very favorable.
“The banking sector is in excellent shape at the moment, with a reduction in credit costs and overall risks associated with banking. This is an opportune time for the banking industry,” he stated.
“The government’s banking policies are functioning exceptionally well, and the economy has shown signs of improvement. Even amidst the disruptions caused by the Covid-19 pandemic, when numerous businesses faced closures, the government managed the situation adeptly, implementing tangible measures that have bolstered the sector,” he added.