Finance Minister Nirmala Sitharaman Urges Banks to Increase MSME Lending
Finance Minister Nirmala Sitharaman has urged banks to step up lending to the MSME sector, infrastructure projects, and industry. She emphasised that banks with strong balance sheets should take lead in driving credit growth.
Collaboration with NBFCs & PSBs
Sitharaman encouraged deeper partnerships between public sector banks (PSBs) and non-banking financial companies (NBFCs), especially through co-lending models. Such collaboration, she said, would help channel credit to underserved areas.
Financial Health Priority
She stressed that banks must maintain robust balance sheets to be able to take on risk and support economic growth. Weak financials, she warned, limit the ability to finance large infrastructure or new investments.
Broader Economic Goal
Given global uncertainties, the minister said reliable credit flow is crucial to sustain domestic demand. She linked strong lending to India’s capacity to invest in infrastructure, industry, and innovation.
