India's Banking System Achieves Record Growth

M Nagaraju, secretary of financial services, announced that India's banking system has recorded a historic 15.90% growth, with significantly reduced NPAs. He highlighted robust financial support for SMEs and women's economic empowerment through initiatives like Jan Dhan Yojana and Mudra Yojana.

M Nagaraju, the secretary of the department of financial services under the finance ministry, on Tuesday said the country's banking system -- both public and private sector-- was doing ''very well'', recording 15.90 per cent annual growth.

''Our public and private sector banks are doing very well with a growth rate of 15.90 per cent, which is the highest ever in Indian history. The Non-Performing Asset (NPA) across the country has also dropped significantly to 0.40 per cent, which is lower compared to the previous tally,'' he told reporters.

Nagaraju attended two credit outreach programmes in the northeastern state, where loans worth Rs 604 crore were sanctioned for 8,000 beneficiaries.

He said banks now have a strong capital base, while lower NPAs are a key factor behind the robustness of the banking system.

The secretary said the government, under Prime Minister Narendra Modi, has launched a trade guarantee programme worth Rs 2.25 lakh-crore in the wake of the West Asia situation to support small and medium enterprises.

Highlighting financial inclusion measures, he said several social security schemes have benefited millions of people over the past 12 years.

''Under the financial inclusion scheme (Jan Dhan Yojana), a total of 58 crore accounts were opened in 12 years, and 32 crore of those accounts belong to women,'' he said.

Nagaraju added that 56 crore loans have been sanctioned under the flagship Mudra Yojana during the same period, of which 67 per cent have gone to women.

He urged people to take bank loans to set up ventures and ensure timely repayment to become eligible for larger credit facilities.

Chief Secretary JK Sinha and finance secretary Prashant Kumar Goyal were also present at the credit outreach programmes.