Nirmala Sitharaman, Union Minister for Finance and Corporate Affairs, emphasized the government’s push for greater professionalism in state-owned banks, noting their reduced dependence on capital infusion from the Centre.
The government has instituted changes such as separating the roles of chairman and managing director in public sector banks, creating the Financial Services Institutions Bureau (formerly Banks Board Bureau) to recommend appointments, and encouraging lateral hiring for specialized roles like digital banking and wealth management.
Sitharaman highlighted the improved health of the banking sector, with reduced NPAs and increased dividends to the government. Public sector banks are now tapping into public markets for funds rather than relying solely on government capital infusion.
Private sector investments are notably increasing, particularly in sectors like hydrogen, green hydrogen, ammonia, and semiconductors, indicating a willingness to take on high-risk ventures.
She also expressed optimism about India’s GDP growth, expecting it to surpass 8% for the last quarter of the current financial year, leading to an average growth of 8% or higher for FY24.
Inflation management remains a priority, with efforts to keep it within the RBI’s target range of 2-6%, aided by measures to address seasonal food shortages and maintain macroeconomic stability.
