President Concerned About Lowered Profitability of Banks

Pranab Mukherjee addressing at the Centenary Celebrations of the Karur Vysya Bank, in Chennai, Tamil Nadu on September 10, 2016
Pranab Mukherjee addressing at the Centenary Celebrations of the Karur Vysya Bank, in Chennai, Tamil Nadu on September 10, 2016

It is your sacred responsibility to protect money of those who have reposed trust in you, the President of India tells Bankers.

The President of India, Pranab Mukherjee, has expressed his concerns over the increase in stressed assets and lowered profitability of Banks.

He was participating in the Centenary Celebrations of Karur Vysya Bank in Chennai on Saturday.

Speaking on the occasion, the President pointed out that stressed advances to gross advances of scheduled commercial banks have increased from 10.90% in March 2015 to 11.40% in March 2016.

The aggregate provisions made by all scheduled commercial banks have consequently increased from Rs 73,887 crores for the year March 2015 to Rs 1,70,630 crores for the year ending March 2016.

[आओ मिल कर करें एक नये और समृद्ध भारत का निर्माण]

As a result, he said, resources available for credit disbursement by commercial banks has been affected and is not in a desirable situation. There is need for credit expansion in a growing economy like India, the President suggested.

Overall, he said, the Indian banking sector has done well, especially during the financial crisis, and he would like to congratulate them. However, they must remain prudent about the situation of NPAs.

The President concluded asking Bankers to always remember that they were trustees of the depositors’ money. It was their sacred responsibility to protect the money of those who have reposed their trust in them.

Photo courtesy: Press Information Bureau

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Rakesh Raman