Mumbai, Mar 18 (KNN) State Bank of India Chairman C S Setty has praised the government’s digital initiatives for formalising the MSME and agriculture sectors, stating these efforts have significantly expanded banks’ lending capabilities to these segments. 

Speaking at the 77th Annual General Meeting of the Indian Banks’ Association (IBA) on Sunday, Setty emphasised how digitalisation has transformed these previously underserved sectors, enabling financial institutions to develop innovative lending models.

The AGM was presided over by IBA Chairman and Central Bank of India MD & CEO M V Rao, along with IBA Chief Executive Atul Kumar Goel. 

Financial Services Secretary M Nagaraju attended as the chief guest and highlighted the strong performance of banks over the past three years, including the last three quarters of the current fiscal year.

Nagaraju advised financial institutions to identify their focus areas for building capacity and to develop strategic roadmaps for timely capital raising and efficient resource allocation. 

He also emphasised the importance of reducing intermediation costs to improve overall banking efficiency.

In his address, Setty underscored the critical role banks play in financial intermediation and nation-building. 

He called upon the IBA to facilitate information exchange from global institutions and agencies, share industry best practices, and establish a pool of experts to provide support to financial institutions across the country.

(KNN Bureau)