Finance Minister Nirmala Sitharaman has chaired a meeting with chiefs of state-run banks and assessed their readiness to tackle any possible disruptions due to the fast-spreading Omicron coronavirus variant.
Plus, the FM had talks with Reserve Bank of India (RBI) governor Shaktikanta Das after a virtual meeting with chiefs of public sector banks on the post-pandemic economic recovery and readiness of the sector in wake of the third wave of Covid infections.
During the meeting with bank heads, held through virtual mode, FM Sitharaman also asked lenders to support sectors, besides farm, retail and MSMEs, that face interruption due to Covid. A finance ministry statement said the FM observed that business outlook is progressively improving in spite of the headwinds from global development and the spread of Omicron, and that contact-intensive sectors may require more support during the pandemic.
“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,” the finance ministry said.
Bankers pointed out that public sector banks (PSBs) have observed an improvement in the repayment culture in the country, adding that they . 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.
The finance ministry statement mentioned that bankers are confident that PSBs are adequately capitalised and prepared for any stress scenarios in future. FM Sitharaman also assessed the measures taken by PSBs in implementing pandemic-related measures initiated by the government and the central bank.
The FM also thanked the bankers for extraordinarily supporting the country from the start of the pandemic, appealing to the banking community to observe Covid-19 appropriate behaviour for the safety of their staff and families and ensure that everyone is vaccinated.
An in-depth presentation was made by State Bank of India chairperson Dinesh Kumar Khara on pre-pandemic and current scenarios of the banking business. Other heads of banks also shared their views on the overall assessment of the banking business and gave suggestions for the overall growth of the business.
