Establish banks which rank among top banks of the world: Modi to banking sector

He was speaking at Gyan Sangam - the Bankers` Retreat in Pune.

He said it was perhaps the first time that banks had given tasks to the Prime Minister through a presentation.

He said the Gyan Sangam reflected team spirit and a collective will to address issues.

He described Gyan Sangam as a unique initiative.

He said the objective in this bankers` retreat was to find solutions to problems, and this was the first step towards catalyzing transformation.

Modi said informal discussions helped achieve meeting of minds, which in turn enabled strategic goal setting.

The Prime Minister appreciated the efforts of the banks in successfully implementing Pradhan Mantri Jan Dhan Yojana. He said this is going to have multiple effects.

He said the Jan Dhan Yojana would help redefine goal setting among banks, due to enhanced confidence levels following the success of the programme.

The Prime Minister said 7 crore families had benefited from direct cash transfers of LPG subsidy in just three days since January 1st. He said this represented one-third of all families India. He said such achievements should boost confidence.

The Prime Minister said the banking sector of a country mirrors its economic rise. Japan and China had banks in the top ten banks of the world during their economic rise.

The Prime Minister said banks would be run professionally, and there would be no interference. But accountability was essential.

He said the Government had no vested interest, and public sector banks can derive strength from this fact.

However, the Prime Minister said India is a democracy.

He said he is against political interference, but supports political intervention, in the interest of the people. He said political intervention will enable the voice of the common man to reach such institutions.

The Prime Minister said this also highlighted the issue of poor financial literacy in the country. He said today even the common man needed financial literacy. He called upon banks to take the lead in encouraging competitions on financial literacy in schools, much like mock Parliament competitions.

The Prime Minister said banks should develop dedicated teams to fight cyber crime.

Modi said that with 81% of branches and 77% of deposits, the net profits should improve from current levels of 45%.

The Prime Minister called for developing common strengths among the 27 public sector banks. He suggested this could be done in areas such as software, and advertising. He gave the example of number portability in the telecom sector in this regard. He said this would improve the customer-centric focus of banks. The Prime Minister said public sector banks, as a team, should also be conscious of the direction in which the country is moving, and work towards simplifying procedures to facilitate the common man.

Modi also called upon banks to trust the common man.

The Prime Minister said the Swachhta Abhiyan has caught the imagination of the younger generation. He called upon each public sector bank to help develop 20,000 to 25,000 Swachhta entrepreneurs. He also asked banks to prioritize loans to students as this would be a very productive investment for the country. He said the country needs skill development for its youth in a big way, and banks need to take the lead in this.

The Prime Minister asked public sector banks to set goals for the 75th anniversary of independence in the country in 2022. He said he had resolved to provide housing for all by 2022, and banks had a huge opportunity here, as 11 crore houses were required.

The Prime Minister said banks should redefine parameters for success. For instance, let them prioritize loans to enterprises which will generate more employment, he said.

The Prime Minister called for an end to lazy banking, and asked banks to take on a proactive role in helping the common man.

Modi said that as part of Corporate Social Responsibility, banks should take up one sector each year to play a positive role.