In this episode of the Perspective Prog. based on ‘Budget 2022-23: Pace of Banking Reforms’. In the run-up to the Union Budget 2022, we’ve been focusing on specific sectors of the economy, their performance in the current fiscal, and going forth their expectations from Finance Minister Nirmala Sitharaman. Today we will talk about the banking sector – which has shown signs of recovery. Bank credits have increased from 6 percent in 2020-21 to 7.3 percent in 2021-22, though bank deposits have reduced from 11.3 percent in 2020-21 to 9.6 percent in 2021-22. Pursuant to the government’s 4Rs strategy of Recognition, Resolution, Recapitalisation and Reforms, Non-Performing Assets (NPAs) of the banking sector have declined to nearly 8.5 lakh crore as on March 31, 2021. As per the Financial Stability Report (FSR) released by Reserve Bank of India (RBI) in July 2021, macro-stress tests, on the basis of regression modelling, indicate that the Gross Non-Performing Asset (GNPA) ratio of Scheduled Commercial Banks, under the baseline scenario, may increase from 7.48 per cent in March 2021 to 9.80 per cent by March 2022. The net profit of Public Sector Banks (PSBs) surged to over Rs 14,000 crore in the first quarter and further rose to more than Rs 17000 crore in the second quarter ended September 2021. Similarly, private sector banks including HDFC Bank, ICICI Bank and Kotak Mahindra Bank also posted healthy profit with reduction in bad loans. Experts say – timely government action, quick adaptability of the banking industry in conjunction with the power of technology have set the base for credit growth improvement in the coming year as well. So, on the cusp of recovery, how does the outlook look like for the sector in the coming financial year? How will the banking sector contribute to the country’s expanding economy? And for this, what are the expectations and hopes from the upcoming Budget. Also, what are impending reforms in the banking sector that the new financial year may bring about?
Guests:
1. C.M. Vasudev, Former Finance Secretary, GoI
2. Dr. Charan Singh, Former Chairman, Punjab & Sind Bank
3. Bikash Narayan Mishra, Senior Advisor, Indian Banks’ Association
Anchor: Teena Jha
Producer: Amit Srivastava, Sagheer Ahmad
#SansadTv#Perspective
Follow us on:
-Twitter: https://twitter.com/sansad_tv
-Insta: https://www.instagram.com/sansad.tv
-FB: https://www.facebook.com/SansadTelevi…
-Koo: https://www.kooapp.com/profile/Sansad_TV
