Step up lending for public infra, MSMEs: FM Sitharaman to banks – The Times of India

PUNE: Finance minister Nirmala Sitharaman on Thursday called upon banks and financial institutions with strong balance sheets to step up lending for public infrastructure, industry and the MSME sector.Addressing the Foundation Day event of Bank of Maharashtra, Sitharaman highlighted the critical role of banks amid growing global uncertainty. “The global environment has become increasingly unpredictable. The extent to which countries are affected depends on their exposure to these shocks and how well-prepared they are.”FM said despite the turbulence in the global economy, India showed resilience, supported by strong economic fundamentals and improved sovereign ratings from international agencies. She emphasised that India’s robust response to global challenges was not coincidental but driven by solid domestic demand and the inherent strength of its economy.Sitharaman also stressed the need for public sector banks to maintain professional management and a customer-centric approach. “Every complaint must be seen as an opportunity to improve, innovate and reinforce trust in the minds of the customers. Grievance redressal must go hand in hand with root cause analysis, systemic corrections in products, processes and conduct, besides a commitment to ensure the complaints do not recur.”At the event, department of financial services secretary M Nagaraju said the credit extended by banks to micro, small and medium enterprises (MSMEs) would aid in their expansion, helping them cope with financial stress in distressed sectors. “Govt has been laying great emphasis on providing more capital to MSMEs. But banks should also provide more capital to the MSMEs, both for expansion and recovery from stress, if there is any,” he said.