| Khatana hails Modi Govt Banking Reforms, Defence Investment Push | | |  HYDERABAD, Aug 19: Senior Bharatiya Janata Party leader and Rajya Sabha Member of Parliament Engineer Gulam Ali Khatana has lauded the Modi government initiatives to strengthen the banking sector, improve the financial health of public sector banks, expand credit support for businesses and accelerate defence manufacturing, saying the reforms are yielding visible results in India's economic and strategic sectors. Khatana said the recent financial performance of public sector banks reflects the positive impact of the reforms and financial discipline introduced by the Modi government. During FY 2025-26, public sector banks recorded a record net profit of Rs 1.98 lakh crore, while the gross non-performing assets (GNPA) ratio declined to a historic low of 1.9 per cent. He said the total business of public sector banks has crossed Rs 283 lakh crore, while credit to Micro, Small and Medium Enterprises (MSMEs) increased by 19.6 per cent and retail credit grew by 19.8 per cent, reflecting the banking sector's expanding support to different segments of the economy. According to Khatana, deposits with public sector banks increased from Rs 107.2 lakh crore to Rs 156.3 lakh crore over the past five years, while advances rose from Rs 74.3 lakh crore to Rs 127 lakh crore.
During the same period, net profit of public sector banks increased from Rs 67,000 crore to Rs 1.98 lakh crore, while the GNPA ratio declined from 7.3 per cent to 1.9 per cent. The Capital to Risk-Weighted Assets Ratio (CRAR) also improved from 14.6 per cent to 16.6 per cent, indicating stronger financial resilience in the banking sector.
The Rajya Sabha MP also welcomed the measures taken by the Modi government to support businesses affected by the West Asia crisis. He said Emergency Credit Line Guarantee Scheme 5.0, launched in May 2026, aims to provide overall credit support of Rs 2.55 lakh crore.
Under the scheme, 100 per cent guarantee coverage has been provided for MSMEs, while 90 per cent coverage has been extended to non-MSMEs and passenger airlines, providing much-needed financial support to businesses facing difficulties due to the crisis.
Khatana also highlighted the progress made in the defence manufacturing sector, describing it as an important outcome of the Modi government's policy initiatives aimed at promoting self-reliance in defence production.
According to Defence Secretary Rajesh Kumar Singh, the two Defence Industrial Corridors established in Uttar Pradesh and Tamil Nadu have attracted investment commitments of around Rs 70,000 crore, with nearly Rs 10,000 crore already translated into actual investment on the ground. |
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