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Journalism of Courage
At a time when major banks around the world witnessed a collapse, like the Silicon Valley Bank in US, Union Finance Minister Nirmala Sitharaman Saturday asked the country’s public lenders to remain vigilant and identify stress points, if any.
Sitharaman was chairing a meeting in New Delhi to assess the performance of the national banks on various financial health parameters and their resilience in light of the current global financial scenario.
During the meeting, the Finance Minister emphasised on preparedness along with due diligence through adherence to the regulatory framework by focusing on risk management, diversification of deposits and assets base, a government statement said.
Sitharaman also urged that the PSBs look at business models closely to identify stress points, including concentration risks and adverse exposures. She encouraged PSBs to use this opportunity to frame detailed crisis management and communication strategies.
Advising the national banks to remain vigilant about the interest rate risks and regularly undertake stress tests, the Finance Minister highlighted that PSBs must leverage the full potential of branches opened in International Financial Services Centres in GIFT City Gujarat to identify international opportunities, including prospects related to Persons of Indian Origin (PIOs).
The managing directors and chief executive officers of the PSBs apprised Sitharaman that they are taking all possible steps to safeguard themselves from any potential financial shock, especially in view of the recent developments in the global banking sector.
