Rahul Gandhi Raises Concerns Over PSBs, Sitharaman Responds
Congress leader Rahul Gandhi raised questions about the financial health of public sector banks (PSBs) during a parliamentary session, alleging that the institutions are under strain. Finance Minister Nirmala Sitharaman, however, dismissed these claims, labeling them as “baseless.”
Gandhi, during his address, highlighted issues he believes are affecting the performance of PSBs, suggesting that their financial stability is at risk due to mismanagement and alleged favoritism in loan disbursements. He also called for greater transparency in their operations to protect public interests.
Sitharaman Defends Public Sector Banks
Responding to the allegations, Sitharaman stated that Gandhi’s assertions were not backed by data. She emphasized that the financial health of PSBs has significantly improved under the current government, citing enhanced capital adequacy, reduced non-performing assets (NPAs), and robust profitability as indicators of their strength.
“The claims made by Rahul Gandhi are baseless. The government has consistently worked to strengthen public sector banks through capital infusion and policy reforms,” Sitharaman said.
The Finance Minister also highlighted initiatives such as the amalgamation of banks to create stronger entities and measures to improve governance and operational efficiency.
Key Achievements of PSBs
Sitharaman detailed the turnaround in the performance of PSBs, attributing the success to reforms initiated over the past few years. According to her, NPAs have reduced to their lowest levels in nearly a decade, while credit growth has surged, reflecting increased confidence in the banking sector.
She further pointed out that PSBs have been instrumental in driving financial inclusion, particularly through schemes such as the Pradhan Mantri Jan Dhan Yojana and Mudra Loans.
Opposition Seeks Further Clarification
Despite Sitharaman’s assurances, opposition members called for a detailed review of PSBs’ financial performance. They also sought clarity on the impact of alleged loan write-offs and demanded accountability in cases of bad loans.
As the debate continues, the health of public sector banks remains a contentious issue, with both sides presenting contrasting views on their current status and future trajectory.
