Pune: There is a need to rethink strategies for public sector banks in the country and the efforts for their consolidation would not be limited to merger and acquisitions, said a senior finance ministry official . Financial Services Secretary Hasmukh Adhia also said that it was absolutely essential to implement banking reforms and making the banks stronger was necessary for the economic growth.
Speaking to reporters at a pre-event briefing on two-day financial sector retreat 'Gyan Sangam' here, Adhia also said that asset quality was a problem for many PSU banks, while low credit offtake was also an area of concern. He said there is a need for a rethink on strategies for public sector banks. 'Gyan Sangm' was scheduled to start later this afternoon and would be addressed by Prime Minister Narendra Modi tomorrow.
Others expected at the event include Finance Minister Arun Jaitley and RBI Governor Raghuram Rajan, along with a host of PSU bank chiefs and top executives of insurance companies. Among other issues, Prime Minister's Jan Dhan Yojana would also be discussed at the event and Adhia said that 10.3 crore accounts have been opened so far under this programme for giving bank accounts to all.
On financial inclusion, Adhia said 10.3 crore new accounts have been opened under the Prime Minister Jan Dhan Yojana. About 98 per cent households have been covered under the scheme. "Our intention is to cover all the financially excluded households by January 26 and we are working towards that," he said. Recognising the importance of this issue, one of the six themes of the discussion is how to achieve universal financial inclusion here. This retreat has been held to take forward the government’s commitment to reforms in the financial sector. The growth and change in the financial sector have to be in tune with the development in the real sector, said the Secretary.
"You all will agree that banks and financial institutions are the backbone of the economy. Stronger the bank and financial institutions, stronger would be the growth of the economy," he said. "When the country is trying to achieve accelerating growth of economic development, it is absolutely essential that banking reforms are thought about, deliberated about," he added.
