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    Banking sector facing many challenges: Gadkari

    Synopsis

    Gadkari also listed ensuring transparency and giving returns on deposits as challenges before the banking sector.

    PTI
    Union minister Nitin Gadkari (File Pic)
    NAGPUR: Union minister Nitin Gadkari on Saturday said that the banking sector was facing a lot of challenges on various fronts.

    Gadkari also said, "Banking sector is facing a lot of challenges and problems. Similarly, in this time financing with transparency and return on that finance has certainly become a big examination for banks".

    Speaking after inaugurating zonal office of Indian Bank here, the Highways and Road Transport Minister said that people should also pay their dues to banks on time.

    "Prime Minister Narendra Modi has said that bank loans in the MSME (micro, small and medium enterprises) sector will be sanctioned in 59 minutes and it will be connected with GST and Income tax. Those having a good track record get their loans sanctioned quickly," he said.

    Gadkari further said that it was incumbent upon banks to ensure that loans sanctioned under various public welfare schemes get disbursed quickly.

    He also emphasised the need to encourage the handloom and handicraft industry for creating employment opportunities and boosting growth in the MSME sector.

    The minister said "Solar Charkha" cluster will be launched in the cotton belt of Vidarbha from where export quality ready-made garments will be manufactured.

    "Solar Charkha" is the initiative of the MSME ministry to ensure inclusive growth by generation of employment, especially for women and youth, and sustainable development through solar charkha clusters in rural areas.

    Gadkari also talked about giving additional land to HCL Technologies operating in Mihan (Multi-modal International Cargo Hub and Airport at Nagpur).
    (Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)

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    18 Comments on this Story

    MURUGAVEL K381 days ago
    Rightly said, Mr. Minister Gadkari. Thank you for exhorting people to remit their loan instalments on time. Solar Charka is a good scheme, and that too for the drought and debt stricken Vidharba Region. People should be encouraged to possess the Indian made Handicrafts so that those handicrafts can be made by MSMEs. As Indian Handicrafts would be much liked by westeners the export potential can be explored.
    Hudaf Shaikh381 days ago
    The biggest challenge facing banking sector is recovery of loans in the infrastructure which is plagued with wilful violations of contracts by unscrupulous clients.
    While banking sector is now largely stopped financing NHAI related contracts due it''s huge contingent liabilities, the challenge is for them to recover the dues from developers whose contractual dues are stuck in arbitration or legal cases with NHAI - unless our judicial sector acts quickly, we will end up with another round of NPAs.
    Jayaraman Raju381 days ago
    it is not important how fast the loans are sanctioned and disbursed but how promptly the loans are recovered; if the loans are to be recovered regularly then the economy should support the ventures of the borrowers; as long as the flow of funds does not stop then businesses will thrive and banks would not face any issues;
    The Economic Times