Public sector banks earlier known for huge losses, NPAs; now for record profits: PM Modi

Prime Minister Narendra Modi on Saturday hit out at the previous UPA government, saying while it destroyed the banking sector with "scams" his dispensation has restored its good financial health, with India now known for the sector's strength.

Addressing a Rozgar Mela after giving appointment letters to over 70,000 recruits virtually, Modi noted that a large number of them have been employed in the banking sector as he highlighted how it was "destroyed" under the previous dispensation before his government took corrective measures.

He said that the "phone banking" scam was one of the biggest scams of the previous government as it broke the back of the banking system.

The idea of phone banking was different for that government as loans of thousands of crores of rupees were given to favourites of some powerful leaders and families, and those loans were never meant to be returned, he said.

His government, Modi asserted, took several measures, including strengthening the management of banks, merging small banks and injecting professionalism, to help the sector.

Public sector banks were earlier known for losses running into thousands of crores of rupees and non-performing assets (NPAs), but now they are known for record profits, the prime minister said.

He also praised banking sector employees for their hardwork and commitment to serve people and execute various government schemes to help the poor and unorganised sectors through loans under the 'Mudra' scheme and to support women self-help groups.

Modi said India has emerged as a centre of global trust and attraction, adding that the country has to make full use of it. Opportunities are increasing in various fields, he said.