Building Strategic Capacities in State-Run Banks: A Call to Action

M Nagaraju, Secretary of the Department of Financial Services, urged state-run banks to enhance capacities, collaborate on technology, and focus on efficient resource allocation. Speaking at the IBA's annual meeting, he emphasized reducing intermediation costs and enhancing credit affordability to improve the financial health of public sector banks.

M Nagaraju, the Department of Financial Services Secretary, has called for state-run banks to focus on building their capacities, timely capital raises, and efficient resource allocations to strengthen their financial health.

Addressing industry leaders at the IBA's annual general meeting, Nagaraju stressed that public sector banks should collaborate to enhance areas like cybersecurity, risk management, AI analytics, fintech incubation, and cloud services. He highlighted the importance of roadmaps for capacity building, capital raising, and resource allocation to reduce intermediation costs, making credit more affordable.

He emphasized that reform measures over the past years have improved banks' financial health, urging them to share best practices and innovate through collaboration. Nagaraju tasked the IBA with playing a proactive role in fortifying the regulatory framework and driving industry inclusivity and innovation.

(With inputs from agencies.)