Finance Minister Nirmala Sitharaman said on Saturday that the Indian economy has shifted from the double balance problem of banks and companies to the double balance advantage due to the joint efforts of the Modi government.
Profit of public sector banks rose to Rs 1.04 lakh crore in 2022-2023, tripling from what it was in 2014, the minister said at the opening of Punjab & Sind Bank’s headquarters here. The double balance sheet problem refers to a deterioration in the financial health of both banks and companies.
“As a result (of various government initiatives) I am happy to say that the problems of double balances have disappeared as the Reserve Bank noted that it is an advantage of double balances that the Indian economy is benefiting from,” Sitharaman said. .
The minister said the term twin balance sheet has been heard after a long time and according to the Reserve Bank, the Indian economy is now benefiting from the twin balance sheet advantage.
She said the performance of public sector banks has improved as a result of several initiatives taken by the Modi government since 2014. There was an improvement in all critical parameters such as return on assets, net interest margin and provision coverage ratio, she added.
(This story has not been edited by News18 staff and was published from a syndicated news agency feed – PTI)