“In terms of weighing which India has restored its economy between 2014 and now more particularly banks it’s actually a lesson for Harvard Business School” said Nirmala Sitharaman while speaking at the event.
Sitharaman highlighted the significant transformation in India’s banking sector and the governmental reforms implemented post-2014. She emphasized the challenges faced by banks in the past, notably the twin balance sheet problem in 2014, where non-performing assets (NPAs) burdened banks’ balance sheets, impeding lending to businesses and hindering loan repayments by companies.
Drawing parallels, Sitharaman referenced the collapse of the Silicon Valley bank in the US to underscore the resilience of Indian banks amidst the pandemic. She lauded the Indian banking sector for adeptly managing mergers and ensuring stability during testing times. Reflecting on India’s economic journey, Sitharaman acknowledged the hurdles encountered in restoring the economy, such as merger-related issues, liquidity challenges in 2019, the impact of COVID-19 in 2020, and the subsequent need for economic recovery.
Sitharaman expressed confidence in India’s future, envisioning a prosperous Vikshit Bharat by 2047 through sustained collective efforts. She stressed the crucial role of all stakeholders in achieving this vision, stating, “Another good solid 25 years of Sabka prayaas, we will be able to reach Vikshit Bharat.”
Highlighting the resilience and progress of the Indian economy, the minister underscored the government’s commitment to driving growth and development. She emphasized the importance of continued efforts towards maintaining the health and stability of banks, contrasting the situation in the West where managing banks post-COVID remains a challenge.
