PSU’s growth, robust banking infra key to nation’s economic success: PM Modi

PM Modi on Republic: In an exclusive interview with Republic Media Network's Editor-in-Chief Arnab Goswami, Prime Minister Narendra Modi has highlighted the key economic milestones achieved during the last one decade of the Bharatiya Janata Party (BJP)  led government in power, driven by his strategy of "reform, perform, and transform."

Talking about the steady improvement in the financial health of government-owned enterprises, PM Modi said, “In 2014, the gross revenue of the Public Sector Undertaking (PSUs) was Rs 20 lakh crore and today it stands at Rs 38 lakh crore, nearly doubling in the last 10 years. The net worth of government companies in 2014 was worth Rs 9 lakh crore and today they are worth more than Rs 80 lakh crore driven by a staggering 225 per cent increase in the market capitalisation of these companies amid global economic instability.” 

PM Modi also mentioned that the shares of the state-owned companies faced a 6 per cent decline during the UPA II (2009-2014) but during the BJP-led government, the stocks of public sector enterprises are reaching new highs. 

The  S&P BSE PSU Index, the index tracking the stock performance of government-owned companies, have given more than 168 per cent returns to its investors despite strong global economic turmoil. 

The Prime Minister also made it clear that the central government’s "no interference policy" has led to improved operational efficiency in government banks and companies. PM Modi said, “When people elected us to serve them, we made sure that no political interference in PSUs and state banks which resulted in a continuous improvement in their structure and efficiency.” 

Building effective banking system

Prime Minister Narendra Modi stressed that the system of a strong financial institution in the country underlined the role of a reliable banking system in building global confidence. PM Modi said, “Due to Phone Banking scams, the banking system of the country took a massive hit. When a nation's banking infrastructure falters, global trust in the nation diminishes rapidly. This loss of confidence not only impacts the Rupee's value but the whole world no longer wants to be associated with you.” 

“When we came to power, 11 out of 21 banks were placed under the RBI's stringent daily monitoring, which indicates the state of banks’ precarious state. Our concentrated efforts on implementing the IBC code and injecting capital into these banks, sourced from taxpayers' funds, were key in safeguarding the integrity of the nation's banking system,” the Prime Minister added. 

The PM said that addressing corruption and implementing robust banking practices helped him to achieve new highs for India’s banking system. 

“Today, I am proud to announce that the collective profit of these banks has surged to over Rs 1 lakh crore, an unforeseen milestone in the history of our banking sector,” PM Modi remarked. 

The Prime Minister also underlined strong improvement in banks' improving Non-Performing Assets (NPAs). PM Modi said, “The steady decline in banks' Non-Performing Assets (NPAs) is a prime example of our Reform, Perform, and Transform strategy in action.”