NEW DELHI: Union Finance Minister Nirmala Sitharaman on Saturday (March 25) chaired a meeting to review the performance of government-owned Public Sector banks (PSB), where various financial, efficiency and health parameters in the banking sector were reviewed.
This review meeting comes in the midst of volatility in the United States banking system due to the recent collapse of Silicon Valley Bank and some other banks in contagion. For the record, the major global lender in the world of technology startups, the Silicon Valley Bank collapsed on March 10 following a run on the bank, compelling the U.S. federal government to step in.
Regulators closed the tech lender and gave it over to the Federal Deposit Insurance Corporation of the United States (FDIC). The FDIC is currently serving as receiver, which normally entails that it will sell off the bank's assets to reimburse its clients, including depositors and creditors.
"Finance Minister Nirmala Sitharaman chairs the meeting to review performance of Public Sector Banks PSBs on various financial, efficiency and health parameters," Ministry of Finance tweeted. "The meeting is also being attended by Union Minister of State for Finance Dr Dr.Bhagwat Karad, Secretary DFS India, Chairman, The Official SBI and MDs & CEOs of Public Sector Banks.
Significantly, a lot of Indian firms have money stashed in other banks in addition to the failing Silicon Valley Bank in the United States.
Union Minister Rajeev Chandrasekhar had earlier emphasised that the Indian banking sector is resilient and powerful during the Silicon Valley Bank-led crisis in the U.S. banking system and stated startups should choose Indian banks as their preferred partners.
Chandrasekhar, the Union Minister of State for Electronics and IT, claimed that Gift City's unique features may provide speedy and effective help for Indian companies.
The MoS also claimed that a transfer of bank deposits of more than USD 200 million had already been made into GIFT City, Gujarat, which he claimed was evidence of the expanding importance of the Indian financial system.
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