Banks recorded profits of around Rs.3 lakh crore in 2024
Public sector banks have emerged as strong and competitive institutions, standing shoulder to shoulder with private and foreign banks in supporting India’s growth, noted Commerce and Industry Minister Piyush Goyal http://commerce.gov.in.
Addressing the MSME Banking Excellence Awards in New Delhi on 22 Dec, Goyal highlighted the critical role of the banking system in supporting micro, small and medium enterprises (MSMEs), noting that access to timely and adequate credit has been central to the growth of small entrepreneurs https://www.bseindia.com/.
He underlined that banks have played a key role in extending institutional finance to MSMEs, including small borrowers who earlier depended on informal sources of credit, thereby enabling them to start businesses, expand operations and improve their livelihoods https://www.nseindia.com/.
Goyal expressed confidence that MSMEs, startups, incubators and young entrepreneurs would continue to receive strong support from the banking system, complemented by various government schemes.
He pointed out that banks recorded profits of around Rs.3 lakh crore last year, demonstrating their capacity to lend to honest borrowers. He added that MSME credit has grown at a compound annual growth rate of about 14 per cent in recent years, with even greater opportunities ahead as India expands its international trade arrangements while safeguarding the interests of farmers, MSMEs, fishermen and the dairy sector http://uco.bank.in.
Calling upon banks to lend liberally and responsibly to support MSME growth, Goyal said banks, now empowered and should continue to serve the nation with honesty and boldness. He encouraged speedy and transparent loan approvals and disbursements, adequate availability of capital for capex, opex and working capital, and proactive guidance to MSMEs to help them leverage government schemes and capital markets as they grow https://sbi.com.in/.
Stating that many large corporates today began their journey as MSMEs, the Minister said the strength of the MSME sector would ultimately determine India’s future growth.
He urged banks to be active partners in this journey, describing MSMEs and banks as inseparable twins whose combined growth would power India towards Viksit Bharat 2047. Fiinews.com
