New Delhi [India], August 15 (ANI): PM Narendra Modi, in his address on the 78th Independence Day from the ramparts of the iconic Red Fort hailed the reforms in the banking sector that have strengthened the banking system of India and said that Indian banks now count among strongest in world.

"The banks were in trouble, we made several reforms and today our banks are counted among the strongest banks in the world. This increases the strength of the formal economy," said PM Modi.

The Prime Minister also stated that reforms by a country establish a blueprint for growth and that the government's path of reforms has become a blueprint for growth in India.

"The reforms serve as a kind of blueprint for our path to growth," said PM Modi.

He also said that the commitment to reform is not restricted to editorials or for small praise but for making the country strong.""We have brought big reforms on ground. For the poor, middle class, deprived... for the aspirations of our youth, we choose the path to bring reforms in their lives. I want to assure the citizens of India that our commitment towards bringing reform is neither just for editorials, praise nor under compulsion. It is to strengthen the country," said Prime Minister in his Independence Day speech.

PM Modi pointed out that the banks have provided great stability to the MSME sector, and small traders and hawkers have also benefitted.

Recently, the Reserve Bank of India (RBI) highlighted that India's banking system is robust, with the gross NPA (Non-Performing Assets) of scheduled commercial banks and NBFCs below 3 percent. The RBI noted several key factors contributing to this positive trend, including enhanced provisioning for bad loans, sustained capital adequacy, and increased profitability.

Additionally, the RBI Governor pointed out that non-banking financial companies (NBFCs) are also displaying strong financial health, reflecting positive trends in the banking sector.

RBI Governor Shaktikanta Das had said, "The non-banking financial companies (NBFCs) also displayed strong financials in line with the banking sector. Notably, the gross non-performing assets (GNPAs) of scheduled commercial banks (SCBs) and NBFCs are below 3 percent of total advances as at end of March 2024."According to the Finance Ministry, various reforms like the Insolvency and Bankruptcy Code have helped improve the financial stability of banks and reduce bad loans, thus decreasing the overall NPA (Non-Performing Assets). (ANI)