Finance Minister Nirmala Sitharaman said, India's public sector banks are stable now after the prompt corrective actions (PCA) when it was caught in turbulence.
While speaking at the Tamilnad Mercantile Bank's (TMB) centenary celebrations in Tuticorin in Tamil Nadu, FM Sitharaman said prior to 2014, the public sector banks were facing several problems. The public sector banks were laden with huge non-performing assets (NPA) which was a serious concern for the future of the banking sector itself. Sitharaman said a problem in the banking sector would impact the entire economic activity.
According to the Finance Minister, the government infused additional capital into public sector banks. It was then prompt corrective action was taken and the public sector banks are back on the rails now, she said. Even as the banking sector was in turbulence, Tamilnadu Mercantile Bank was carrying out its business efficiently, Sitharaman added. She said the way forward is digitization. She said technology-related solutions take away a lot of other problems. And even without a branch in a place, banking services can be offered now through digitization. According to her, using financial technology one can cross populate data and one can assess credit rating which is possible only with digitization.