Banks need to balance between protection of money, asset creation: Prez

President Droupadi Murmu on Tuesday said that banks need to strike a balance between protection of public money and use of savings for asset creation in future.

The President said banks have two fundamental responsibilities- acting as custodians of public money and using savings of the present for future asset creation.

"Balancing both these responsibilities is a challenge for every bank. Sometimes due to vitiation of the balance between these two, worrying economic conditions arise in different parts of the world," she said.

The President was speaking at an event organised by UCO Bank here to celebrate the completion of 80 years of the public sector lender.

Murmu said all banks are duty-bound to uphold the trust of millions of people who keep their savings in banks.

She expressed confidence that the professional staff and vigilant leadership of UCO Bank will discharge these responsibilities effectively.

The President said fintech has been transforming the way people access and manage their money.

"In India, widespread adoption of fintech, even by residents in the poorest and remotest areas, is a proof that people in India are open to adopt technology that empowers them and provides social justice. Today UPI (Unified Payments Interface) is widely regarded as one of the most successful fintech innovations globally," Murmu said.

Stating that she belongs to a family of bankers, the President said fintech has done an enormous job during the COVID-19 pandemic for settling transactions.

She virtually inaugurated 50 branches of UCO Bank across 18 states in the country.

Murmu also laid the foundation stone for the reconstruction of a school in Odisha where the President once worked as a teacher.

West Bengal minister of state for finance, Chandrima Bhattacharya, said that the state is putting all efforts in implementing financial inclusion among the people.

She said the state administration is running 'Lakshmir Bhandar', the largest social security programme in the country, while another initiative 'Duare Sarkar' (Government at doorsteps) is conducted for extending government services to the people.

Under the Lakshmir Bhandar' scheme, financial assistance is to be provided to the deserving family of the state.

Around Rs 1.14 lakh crore credit has been extended to the MSME sector in the state, while self-help groups got Rs 20,000 crore of loans from the banking sector, she said.

UCO Bank Managing Director and Chief Executive Officer S S Prasad said the lender made the highest net profit by the end of December 2022, while current business stood at Rs 4 lakh crore.

The bank has also increased market capitalisation, benefitting its shareholders, he added.