PSBs were worse off under Singh, Rajan: FM

New York, October 16

Public sector banks had the “worst phase” under the “combination” of former Prime Minister Manmohan Singh and ex-RBI Governor Raghuram Rajan, and giving the ailing banks a “lifeline” was her primary duty now, Finance Minister Nirmala Sitharaman has said.

The public sector banks (PSBs) have been grappling with bad loans and the Centre has been taking measures to address the issue. 

In August, the government announced capital infusion of Rs 70,000 crore for PSBs. “Besides, 10 PSBs are being consolidated into four,” Sitharaman said. 

Delivering a lecture here on Tuesday, the Finance Minister said: “It was during Rajan’s time that loans were given just based on phone calls from crony leaders and public sector banks in India till today are depending on the government’s equity infusion to get out of that mire. Dr Singh was the Prime Minister then.”

“I’m sure Dr Rajan will agree that Dr Singh would have had a ‘consistent articulated vision’ for India,” the Finance Minister said delivering a lecture at the Columbia University’s School of International and Public Affairs. — PTI

$5 tn realisable

India has become a $2.7 tn economy, having added $1 tn. The $5 tn aim by 2024-25 is challenging, but realisable. Nirmala Sitharaman, FM