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FM Sitharaman reviews public sector banks amid uncertainty in US banking system

Reported by:  PTC News Desk  Edited by:  Shgun S -- March 25th 2023 02:57 PM
FM Sitharaman reviews public sector banks amid uncertainty in US banking system

FM Sitharaman reviews public sector banks amid uncertainty in US banking system

New Delhi, March 25: Union Finance Minister Nirmala Sitharaman presided over a meeting to assess the performance of government-owned banks on Saturday.

This review meeting takes place against the backdrop of increased volatility in the US banking system as a result of the recent collapse of Silicon Valley Bank and some other institutions in danger of failing.

Notably, the Silicon Valley Bank, a prominent global lender in the field of technology startups, collapsed on March 10 after a run on the bank, requiring the US federal government to intervene.

Authorities closed the tech lender and transferred ownership to the US Federal Deposit Insurance Corporation (FDIC). The FDIC is currently serving as receiver, which means it will liquidate the bank's assets to repay its clients, including depositors and creditors.

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"Union Finance Minister Smt. @nsitharaman chairs the meeting to review performance of Public Sector Banks #PSBs on various financial, efficiency and health parameters," Ministry of Finance said on Twitter.

"The meeting is also being attended by Union Minister of State for Finance Dr @DrBhagwatKarad, Secretary @DFS_India, Chairman @TheOfficialSBI and MDs & CEOs of Public Sector Banks."

Importantly, a number of Indian startups, as well as possibly others, have assets parked with the failed US-based Silicon Valley Bank.

Union minister Rajeev Chandrasekhar has stated that startups should choose Indian banks as their preferred partners, citing the Indian banking sector's resilience and strength in the face of the Silicon Valley Bank-led crisis in the US banking system.

Union Minister of State for Electronics and IT Chandrasekhar stated that specific provisions provided at Gift City in Gujarat can provide Indian companies with speedy and impactful support.

The MoS also stated that a transfer of bank deposits worth more than USD 200 million had already been made into GIFT City, Gujarat, which he described as indicative of the Indian banking system's growing significance.

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