After Rahul Gandhi Flags Concerns Of PSBs, Finance Minister Responds
Finance Minister Nirmala Sitharaman and Leader of Opposition (Lok Sabha) Rahul Gandhi have engaged in a public exchange over the state of India’s Public Sector Banks (PSBs), highlighting contrasting views on their functioning and reforms. Rahul Gandhi initiated the debate following his meeting with the All India Banking Officers Confederation, expressing concerns about the current state of PSBs under the Modi government. Sitharaman responded with a pointed critique of the banking policies during the UPA regime.
Gandhi stated, “Public Sector Banks were designed to give every Indian access to credit. The Modi government has turned these lifelines of the masses into private financiers for only the rich and powerful corporations.” He further shared insights from his meeting with the banking delegation, who voiced distress over the shift in priorities, staff shortages, and toxic work environments. “With staff shortages and a toxic work environment, they are expected to reach unachievable targets without a level playing field,” Gandhi said, also highlighting gender disparity within PSBs. “Women employees are not given equal opportunities or advancement and forced to bear the brunt of dissatisfied public,” he added. Gandhi accused the government of using PSBs as an unlimited source of funds for fraudulent associates and argued that these institutions must prioritise the public good over dividends.
Public Sector Banks were designed to give every Indian access to credit. The Modi government has turned these lifelines of the masses into private financiers for only the rich and powerful corporations.
I met with a delegation from the All India Banking Officers Confederation,… pic.twitter.com/oGbciXRfup
— Rahul Gandhi (@RahulGandhi) December 11, 2024
Sitharaman, in a series of counter arguments, rebutted the Congress leader’s remarks, stating, “Leader of the Opposition Rahul Gandhi’s penchant for making baseless statements is on full display, yet again. India’s banking sector, especially Public Sector Banks, have seen a remarkable turnaround under Prime Minister Narendra Modi.” She criticised the UPA government for its alleged “phone banking” practices, saying, “It was actually during the UPA regime when bank employees were harassed and forced to give loans to cronies through ‘phone banking’ by the then Congress-led UPA government functionaries.”
Leader of the Opposition (LoP) @RahulGandhi’s penchant for making baseless statements is on full display, yet again.
India’s banking sector, especially Public Sector Banks (PSBs), have seen a remarkable turnaround under @PMOIndia @narendramodiDidn’t the people who met with the…
— Nirmala Sitharaman (@nsitharaman) December 11, 2024
She pointed to key reforms introduced by the Modi administration, including the 2015 Asset Quality Review, which she said unearthed questionable lending practices from the UPA era. “Didn’t the people who met with the Leader of the Opposition tell him that high concentration of corporate credit and indiscriminate lending during the UPA tenure had resulted in significant deterioration in the health of PSBs?” Sitharaman remarked, adding that recapitalisation efforts totalling ₹3.26 lakh crore had been undertaken over the past decade to restore the banks’ strength.
Sitharaman also highlighted the government’s emphasis on financial inclusion through schemes like Jan Dhan Yojana, MUDRA, and Stand-Up India, noting that “54 crore Jan Dhan accounts and more than 52 crore collateral-free loans under various flagship schemes have been sanctioned.” She also underscored that the share of loans up to ₹10 lakh and ₹50 lakh had increased significantly, benefiting small borrowers. “This is a testament to Modi government’s philosophy of ‘Antyodyay’,” she asserted.
