Transforming Lending Through Digitalization

SBI chairman C S Setty highlighted the significant impact of government initiatives aimed at formalizing the MSME and agriculture sectors through digitalization. These efforts have not only transformed these sectors but have also enabled banks to develop innovative lending models. This has expanded access to formal credit for sectors that were previously underserved.

Strong Performance by Banks

M Nagaraju, the financial services secretary, praised the strong performance of banks over the last three years, including the past three quarters of the current fiscal. He emphasized the importance of each bank focusing on building capacity, planning roadmaps for timely capital raising, efficient allocation of resources, and reducing inter-mediation costs.

The Role of Banks in Nation-Building

Setty underscored the critical role banks play in financial intermediation and nation-building. He urged the Indian Banks' Association (IBA) to facilitate the exchange of information from global institutions, share best practices, and create a pool of experts to support financial institutions.