Finance Minister Nirmala Sitharaman assessed the financial sector’s ability to deal with any potential interruptions caused by the Omicron COVID-19 variation on Friday.
After a virtual conference with CEOs of public-sector banks, Nirmala Sitharaman spoke with Reserve Bank of India governor Shaktikanta Das about the post-pandemic economic recovery and preparation of the sector in the aftermath of the third wave of coronavirus infections.
According to a statement from the finance ministry, the minister highlighted that, despite headwinds from global development and the spread of Omicron, the business environment is gradually improving, and that contact-intensive sectors may require greater support during the pandemic. Credit demand is likely to rise, according to the finance minister, due to growth in retail segments, stronger general macroeconomic outlook, and improved borrowers’ financial health.
During the review discussion, bankers stated that PSBs had noticed an improvement in the country’s payback culture. PSBs have effected a recovery of ₹5,49,327 crore during the last 7 financial years. PSBs made the largest net profit in the last five financial years in FY 2020–21, with a net profit of 31,820 crore.