FM Sitharaman Urges Banks to Boost MSME Lending and Strengthen NBFC Ties
Finance Minister Nirmala Sitharaman has called on Indian banks to significantly increase lending to MSMEs (Micro, Small, and Medium Enterprises). Speaking at the Bank of Maharashtra’s 91st Foundation Day, she also urged for a deeper, more structured collaboration between NBFCs (Non-Banking Financial Companies) and PSBs (Public Sector Banks) to strengthen the financial system.
The Finance Minister highlighted India’s economic resilience amid global uncertainties, citing the country’s strong macroeconomic fundamentals and young population. She noted the impressive 7.8% GDP growth in the April-June quarter and mentioned that global rating agencies are upgrading India’s economic outlook.
PSBs Take the Lead
M. Nagaraju, Secretary of the Department of Financial Services, also spoke at the event, pointing out a significant achievement: for the first time, Public Sector Banks have surpassed private banks in credit disbursement. He encouraged PSBs to expand their lending footprint beyond just retail loans to include MSMEs, women entrepreneurs, agriculture, and education loans, and to even take their businesses abroad to support Indian entrepreneurs globally.
