FM Nirmala Sitharaman Press Conference Live Updates:Union finance minister announces more steps to accelerate economic growth.
Union Finance Minister Nirmala Sitharaman addressed a press conference amid expectations that government would announce more steps to accelerate economic growth.
On Thursday, the union minister held a media briefing where she discussed development schemes for the northeast region besides direct tax and GST.
“We can front-load some public spending by the Centre,” Sitharaman said during the press conference in Guwahati. A week earlier, finance minister had asked the Competition Commission of India to protect Indian businesses and consumers against foreign companies by taking suo motu action against them.
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“The $5 trillion economy goal will be achieved through reforms, financial strength, technology, consolidation and strong governance. Rs 55,250 crore upfront capital for credit growth and regulatory compliance to support economy,” said Finance Secretary Rajeev Kumar.
Finance Secretary Rajeev Kumar said, “In amalgamation process, the number of banks have been brought down to 12 from 27. There has been no retrenchment so far, there is no chance of retrenchment. The benefits of employment and HR will improve, with amalgamation the best combination will be taken up.
“I am not going to comment on remarks from Congress because if bank frauds became an assumption for the Indian citizen it is because of the Congress party. Many of these fugitives we are trying to get back were encouraged during their time,” said Finance Minister Nirmala Sitharaman.
“Staff should be dedicated at the branch level to make sure last Friday’s announcements are implemented and this consolidation is smoothly applied,” says Nirmala Sitharaman.
“We will enhance technology driven banking,” says Finance Minister Nirmala Sitharaman.
“We aim to enhance effectiveness of Non-official Directors (NoDs),” says Nirmala Sitharaman on the merger of 10 public sector banks.
“We will strengthen Board committee system,” says Finance Minister Nirmala Sitharaman on mega bank merger.
“12 PSU banks now, as compared to 27 PSU banks earlier,” says FM Sitharaman.
Board committee of nationalised banks to appraise performance of GM and above, says FM. Post consolidation, boards goven flexibility to introduce CGM level as per business needs, she added.
We are making path clear for $5 trillion economy, says Sitharaman.
“We shall continue with 2 banks which will have national presence - Bank of India with Rs 9.3 Lakh Crores of business size and Central Bank with Rs 4.68 Lakh Crores of business size,” said Finance Minister Nirmala Sitharaman.
‘Indian Bank to be merged with Allahabad Bank. This will become the seventh largest bank in India, says FM.
Union Bank, Andhra Bank, Corporation Bank to be merged, says Niramala Sitharaman. The finance minister said the mergers would help create next-generation banks. This, she said, would help India become a $ 5 trillion economy in the next five years.
Canara bank and Syndicate Bank are to be merged, said Nirmala Sitharaman. They will be the fourth largest Public Sector Bank with Rs 15.2 Lakh crore business and the third largest branch in India. Synergies, culture and common CBS platform to enable quick realisation of operational gains and enhanced lending capacity, said the finance minister.
FM announces consolidation of PNB, OBC and United Bank. She said: “Punjab National Bank, Oriental Bank of Commerce and United Bank will be brought together and they shall form the second largest public sector bank with the business of Rs 17.95 Lakh crore”.
Gross Non Performing Assets have come down from 8.65 lakh crores to 7.90 lakh crores, says FM.
“To prevent Nirav Modi like frauds, SWIFT messages have been linked to core banking system,” says FM.
“Partial credit guarantee scheme for NBFCs executed; Rs 3,300 crore liquidity support given and Rs 30,000 crore in pipeline,” says FM Nirmala Sitharaman.
“Market capitalisation is expected to reach 51,000 by August 2020. We are going to unlock growth potential through consolidation,” says Nirmala Sitharaman.
“Consolidation of Bank of Baroda, Vijaya bank and Dena bank has brought about wide-ranging benefits,” says Nirmala Sitharaman.
“This financial year, 14 public sector banks are in a profit earning situation out of 18,” says Nirmala Sitharaman.
Reforms we have brought about include the following- now, cash flows are ring-fenced. Business plans are implemented for balanced asset mix, Fugitive Economic Offenders Act has been passed,” said Nirmala Sitharaman
“We need to lay a strong foundation for financial sector. We need to bring about banking reforms, as we have done in the previous years,” said Nirmala Sitharaman.
“After my previous announcement, 4 NBFCs are reaching out to public sector banks to provide the liquidity that they require,” said Nirmala Sitharaman.
Finance Minister Nirmala Sitharaman begins her address to media.
A week before, Finance Minister Nirmala Sitharaman announced a rollback of enhanced surcharge levied on foreign portfolio investors as part of a slew of measures to boost growth. “In order to encourage investment in the capital market, it has been decided to withdraw the enhanced surcharge levied by Finance (no. 2) Act, 2019 on long and short term capital gains arising from transfer of equity shares/units referred to in section 111A and 112A respectively,” Sitharaman told reporters at a briefing on measures for boosting economic growth.
Sitharaman discussed development schemes for the northeast region besides direct tax and GST.
Subsequently, the Centre has eased FDI rules in digital media and single brand retail, coal-mining and contract manufacturing. The government is expected to come with another set of measures to prop up the real estate sector.
Finance Minister Nirmala Sitharaman on Thursday said that more measures to accelerate economic growth are in the pipeline and would be announced in the coming weeks.
“We can front-load some public spending by the government,” the Minister said during a media briefing in Guwahati, where she is as part of her multi-city tour to interact with tax officials, trade and business.