Today, Finance Minister Nirmala Sitharaman announced that the Indian economy has successfully transitioned from the twin-balance sheet problem involving banks and corporates to a twin-balance sheet advantage, thanks to the focused endeavors of the Narendra Modi government. The minister also highlighted that the profit of public sector banks has seen a significant surge, reaching ₹ 1.04 lakh crore in 2022-23, which is three times higher than the figure recorded in 2014. This statement was made during the inauguration ceremony of the corporate office of Punjab & Sind Bank.
The twin-balance sheet problem denotes the simultaneous decline in the financial well-being of both banks and corporates. Finance Minister Nirmala Sitharaman expressed her satisfaction with the government's initiatives, stating that the issues related to twin-balance sheets have been successfully resolved, and the Reserve Bank acknowledged the transformation into a twin-balance sheet advantage that now benefits the Indian economy.
She further mentioned that the term "twin-balance sheet" had not been heard for a considerable period, but now, according to the Reserve Bank, the Indian economy is indeed reaping the advantages of this positive change.
She highlighted that the performance of public sector banks has significantly enhanced due to the multitude of initiatives implemented by the Modi government since 2014.
Notably, there has been improvement across all crucial
parameters such as return on assets, net interest margin, and provisioning
coverage ratio, she further added.
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