FM counters Rahul on PSBs, says their turnaround has benefitted everyone

Union Finance Minister Nirmala Sitharaman on Wednesday dubbed Congress leader Rahul Gandhi’s allegation that state-run banks have been turned into private financiers of the rich as “baseless”, while asserting that public sector banks have seen a remarkable turnaround under the NDA regime, which has benefitted everyone.

 

“@RahulGandhi’s misrepresentation of facts is an insult to the hardworking PSB employees and to the citizens who benefit from a cleaner, stronger banking system. It’s high time the @INCIndia up-skills the LOP’s understanding of governance,” Sitharaman said in a post on X.

 

After meeting a delegation from the All India Banking Officers Confederation, Gandhi alleged on X that the Narendra Modi government has turned PSBs (“lifelines of the masses”) into private financiers for only the rich and powerful corporations.

 

Congress leader in his post earlier in the day said, “Modi govt must stop using PSBs as an unlimited source of funds for their fraudulent friends. There’s also more to a public sector bank than a dividend cheque to the government at the end of the year.”

 

Sitharaman shot back, saying the public also has a shareholding in the PSBs and dividends are the source of income for such investors also and not just for the government.

 

“Leader of the Opposition (LoP) @RahulGandhi’s penchant for making baseless statements is on full display, yet again. India’s banking sector, especially Public Sector Banks (PSBs), have seen a remarkable turnaround under @PMOIndia @narendramodi,” she added.

 

Replying to Gandhi’s allegation that PSBs staff are expected to meet unachievable targets without a level playing field with staff shortages and a toxic work environment, Sitharaman said it was actually during the UPA regime when bank employees were harassed and forced to give loans to cronies through “phone banking” by the then Congress-led UPA government functionaries.

 

On Gandhi’s allegation that women employees in the PSBs are not given equal opportunity for advancement and forced to bear the brunt of dissatisfied public, Sitharaman said women are excelling as MDs, CEOs, and leaders in the sector. “The Modi government’s commitment to women-led development is evident not just in policy but in practice,” she added.

 

Responding to another allegation by Gandhi that PSBs are being forced to prioritise profit over people and are thus unable to serve the public effectively, Sitharaman said 54 crore Jan Dhan accounts and more than 52 crore collateral-free loans under various flagship financial inclusion schemes (PM MUDRA, Stand-Up India, PM-SVANidhi, PM Vishwakarma) have been sanctioned by the government.