Finance Minister Nirmala Sitharaman has asked public sector banks to assess various financial health parameters. The ups and downs in the global banking sector are continuing, amidst which the Finance Minister has taken this step.
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Finance Minister Nirmala Sitharaman has asked public sector banks to assess various financial health parameters. The ups and downs in the global banking sector are continuing, amidst which the Finance Minister has taken this step. According to a Reuters report, after a meeting with heads of public sector banks in New Delhi on Saturday, the Finance Ministry said in a statement that banks have been asked to identify difficulties for them.
Before the meeting, the government had sought details of the bond portfolio of these banks. According to the statement, the Finance Minister told the heads of the banks that banks should protect themselves from any possible financial risk. The statement further said that all macro financial parameters indicate stable and strong public sector banks.
S&P Global Ratings said this week that Indian banks have the capacity to withstand any possible adverse effects arising from the crisis in the US banking sector. The rating agency had said that strong funding profile, high savings rate and government support are among the things that promote financial institutions.
Silicon Valley Bank was also discussed
According to PTI, Finance Minister Sitharaman also asked banks to be vigilant about interest rate risk and conduct regular inspections. It has been told in the report that in a two-hour meeting with the MD and CEO of public sector banks, there was an open discussion on the global environment between the failure of Silicon Valley Bank and Signature Bank. Minister of State for Finance Bhagwan Karad, Financial Services Secretary Vivek Joshi and other senior officials also attended the meeting.
Apart from this, the Finance Minister also discussed about the global financial pressure coming from both short and long term point of view. During the meeting, Sitharaman emphasized that banks should discuss in detail and follow the regulatory framework. The Finance Minister said that banks should closely look at their business model, so that they can identify any kind of risk.