Govt stands behind financial sector for India's growth, says PM Modi

Banks, NBFCs give lowdown on credit flow to PM; present ideas on financial inclusion, housing finance

Prime Minister Narendra Modi on Wednesday held a closed-door brainstorming session with top executives of banks and non-banking financial companies to take stock of credit flow and measures taken to support segments of the economy hit hard by the pandemic. Assuring continued government support to the financial sector, which plays a critical role in funding various segments, including agriculture and micro, small and medium enterprises, he also held forth on Atmanirbhar Bharat, said a source.

Bankers gave presentations on credit flow and financial inclusion. Small groups comprising private and public sector executives, too, made presentations. They were to select one or two ideas in specific areas and present them with solutions before the PM and government officials.

This is part of a series of meetings the PM has been holding for the past few weeks on various sectors of the economy.

Multilateral agencies and raters have indicated that the Indian economy is expected to contract in the current financial year due to severe economic disruptions brought on by the pandemic.

Banks have turned cautious on extending credit. The overall bank credit growth in the banking sector has remained flat for the fortnight ended July 3. Credit growth continues to remain at nearly half the levels seen in the past two fortnights at 6.2 per cent and 6.1 per cent, compared to 12 per cent in the same period in 2019, said CARE Ratings.