Sitharaman reviews public sector banks amid volatility in US banking system
25 March, 2023 | Vaishali Sharma
Union Finance Minister Nirmala Sitharaman presided over a meeting on Saturday to assess the performance of government-owned banks. The banking sector’s financial, efficiency, and health param...
Union Finance Minister Nirmala Sitharaman presided over a meeting on Saturday to assess the performance of government-owned banks. The banking sector’s financial, efficiency, and health parameters were examined.
This review meeting takes place against the backdrop of increased volatility in the US banking system as a result of the recent failure of Silicon Valley Bank and some other banks in jeopardy. For the record, the Silicon Valley Bank, a prominent global lender in the world of technology startups, collapsed on March 10 after a run on the bank, forcing the US federal government to intervene.
Regulators shut down the tech lender and put it under the control of the US Federal Deposit Insurance Corporation (FDIC). Currently, the FDIC is acting as a receiver, which typically means it will liquidate the bank’s assets to pay back its customers, including depositors and creditors.
“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 tweeted.
“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.”
Notably, a number of Indian startups, as well as possibly others, have funds parked in the failed US-based Silicon Valley Bank.
Union minister Rajeev Chandrasekhar previously stated that startups should choose Indian banks as their preferred partners, citing the Indian banking system’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 Information Technology Chandrasekhar stated that special provisions available at Gift City in Gujarat can provide Indian startups with quick 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 evidence of the Indian banking system’s growing prominence.