Amid global banking crisis with the fall of the Silicon Valley Bank and troubles with Credit Suisse, India seems to be making its guard stronger. As per updates, finance minister (FM) Nirmala Sitharaman has reportedly called a meeting of the state-owned lenders.
According to a report in the Economic Times, Nirmala Sitharaman has called this meeting to get their views on the growing global concerns. With the banking system getting more vulnerable amid monetary tightening, the finance minister is looking at assessing the situation and taking necessary insulating steps.
The report adds that owing to the global banking crisis, the finance minister will also assess the performance of public sector banks (PSBs) besides their capital requirements. Since FY23 is nearing its end, the step is being seen as strategic.
“A review will be undertaken likely on Saturday,” ET quoted a source as saying.
While the global banking crisis continues, several experts have ruled out the possibility of impact on domestic banks, primarily due to strong balance sheets. However, the meeting is being seen as important as the finance minister and concerned authorities reportedly want to understand if any policy intervention is needed.
Starting FY24, the Ministry of Finance has already asked all state-run banks to draw a strategic roadmap for three years. Experts believe that special emphasis is also being given to the Indian banking sector since the Adani vs Hindenburg issue caused some unrest in the market.