Finance Minister Nirmala Sitharaman has hit back at Congress leader Rahul Gandhi's remarks regarding the banking sector, accusing the United Progressive Alliance (UPA) government of causing a banking crisis that significantly impacted India’s public sector banks (PSBs). Sitharaman’s comments come in response to criticism from Gandhi, who had questioned the Modi government's handling of financial institutions.
Sitharaman stated that during the UPA’s rule, numerous financial mismanagement issues led to a severe deterioration in the health of PSBs, contributing to a banking crisis. She pointed out that non-performing assets (NPAs) ballooned under the previous government's watch, severely affecting the stability of India's financial system.
In contrast, Sitharaman praised the Modi government for its measures to restore the health of PSBs. The Finance Minister highlighted several reforms introduced by the current government, such as recapitalization of banks, restructuring of NPAs, and implementation of the Insolvency and Bankruptcy Code (IBC), all of which have helped in stabilizing and strengthening the banking sector.
Sitharaman also emphasized that the government's focus on financial inclusion, digital banking, and transparency has led to improved governance within PSBs, further aiding in their recovery. She accused the Congress of failing to address the systemic issues plaguing the banking system during their tenure and instead, now attempting to undermine the efforts of the Modi government.
Rahul Gandhi, in his earlier remarks, had criticized the government for not addressing the issues plaguing the banking sector, particularly in relation to the alleged misuse of public funds and the rise in bad loans. However, Sitharaman’s response refutes these claims, offering a detailed counter-narrative focused on the actions taken by the Modi administration.
As the political debate over economic policies continues, the banking sector remains a crucial talking point. Both the government and the opposition are expected to ramp up their arguments as the general elections approach.
