Banks must play proactive role for inclusive growth: FM

Finance Minister Pranab Mukherjee today asked the banks to play a proactive role for inclusive growth and gear up to face the growing challenges of competition and globalisation.

"Inclusive growth is the moto and objective of the government and we do not want growth only in statistical terms... But in terms of inclusive growth," he said at a function here today.

The banks can play an important role in promoting inclusive growth by reaching out to unbanked areas, he said, adding a major challenge before them would be to meet the rising expectations of customers.

Mukherjee also underlined the need for using technology to reach out to the people.

The Minister recalled how the government embarked on the path of inclusive growth by nationalising 14 commercial banks in 1969. Six more banks were nationalised later.

Mukherjee further said that before the nationalisation of banks, there was one bank branch per 65,000 people. The ratio improved to 14,000 per branch, he said, adding there is a need to better it.