FM Nirmala Sitharaman reviews public sector banks amid volatility in US banking system

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NEW DELHI: Union Finance Minister Nirmala Sitharaman on Saturday chaired a meeting to review the performance of government-owned banks. Various financial, efficiency and health parameters in the banking sector were reviewed.

The review meet comes amid volatility in the US banking system due to the recent collapse of Silicon Valley Bank and some other banks in a contagion. Prominent global lender in the world of technology startups, the Silicon Valley Bank, collapsed on March 10 after a run on the bank, forcing the US federal government to step in.

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 have funds parked in the failed US-based Silicon Valley Bank, and possibly others too.

Earlier, emphasising that the Indian banking system is resilient and strong amid the Silicon Valley Bank-led crisis in the US banking system, Union Union Minister of State for Electronics and IT Rajeev Chandrasekhar had said startups should opt for Indian banks as their preferred partners. He had said special provisions are available at Gift City in Gujarat which can be quick and impactful support for Indian startups.

The minister had also said a transfer of bank deposits worth over $200 million was already made into GIFT City, Gujarat, which, according to him, was a sign of the Indian banking system’s growing prominence. (ANI)

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