The MDs and CEOs of the PSBs apprised the FM that they follow best corporate governance practices, adhere to regulatory norms, ensure prudent liquidity management and continue to focus on strong asset-liability and risk management.
“During the review meeting, there was an open discussion with the Managing Directors and CEOs of Public Sector Banks on the global scenario involving the failure of Public Sector Banks. Silicon Valley Bank “Signature Bank with issues leading to crisis at Credit Suisse,” the finance ministry said in a statement.
According to the statement, he underlined that PSBs should closely look at their business models to identify ‘stress points’, which include concentration risk and adverse risk. He also called upon the PSBs to use this opportunity to prepare detailed crisis management and communication strategies.
Sitharaman also said that PSBs should tap the full potential of branches opened in International Financial Services Centers in GIFT City Gujarat to identify international opportunities, including those related to PIOs.
During the discussion on India’s general banking scenario, the Finance Minister advised PSBs to reduce tax arbitrage in certain debt instruments in view of the steps taken by the government to attract deposits. He asked them to consolidate their strong financial position to support the credit needs of the growing economy and focus on credit outreach in states where credit offtake is less than the national average, especially in the northeastern and eastern parts of India. In.
He urged the bank heads to increase business presence in new and emerging areas such as One District One Product (ODOP), e-NAM, and drones and aim to increase brick and mortar banking presence in border and coastal areas.