PM Modi seeks end to lazy banking; asks banks to be more proactive

Pune: Calling for an end to "lazy banking", Prime Minister Narendra Modi on Saturday said he is against any political interference in functioning of banks but supports necessary "intervention" in the public interest.

Calling upon the banking sector to establish banks which rank among the top banks of the world, Modi said that banks need to be run professionally and assured them that there would be no interference.

"But accountability is essential," Modi said while addressing top executives of public sector banks and other financial institutions here on the last day of a two-day bankers' retreat, 'Gyan Sangam'.

Modi said that the government had no vested interest, and public sector banks can derive strength from this fact. Stating that India is a democracy, Modi 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 institution". Modi also called for an end to "lazy banking" and said that banks need to take a proactive role in helping the common man.

Later briefing reporters at the end of the retreat, Financial Services Secretary Hasmukh Adhia said the Prime Minister told bankers that they will not receive calls from the Prime Minister's Office (PMO).

Modi also asked the banks to develop dedicated teams to fight cyber crime and also highlighted the issue of poor financial literacy in the country.

Emphasising on the need for Indian banks to reach top of the global lists, he 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 two-day retreat is being attended by top bankers including SBI Chairman Arundhati Bhattacharya and was addressed by Finance Minister Arun Jaitley as well as Reserve Bank Governor Raghuram Rajan.

"As part of Corporate Social Responsibility, banks should take up one sector each year to play a positive role," he said adding banks should redefine parameters for success and prioritize loans to enterprises that generate more employment.