Union Budget 2020: Sanjeev Sanyal says banking sector's cleaned up, eyes 'bigger banks'

Principal Ecomic Adviser in Ministry of Finance Sanjeev Sanyal has said that Indian banks have gone through a cleaning process and are w in a better condition to lend due to better liquidity.

"We have cleaned banking system from past 5-6 years which has been completed w. Banks are better regulated w and posses better potential to lend loans for businesses, consumers and large investments. re is better liquidity in system", said Sanyal, hours before Finance Minister presents  union budget 2020.

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'6 to 6.5 percent growth rate'

Speaking of growth rate of ecomy which had substantially dipped in 2019, Sanyal, like IMF expressed confidence on projected urd trajectory stating, "Imports and exports will play a crucial role, also US-China trade war has an effect on ecomy however all of se factors have been taken into consideration and 6 to 6.5 percent is easily achievable".

Sanyal also ted that State Bank of India is  only Indian bank to make it to top global 100 banks whereas countries smaller than India have more banks in top 100 mark. "Our banking system is far smaller with respect to our ecomy, many smaller nations such as Singapore has three banks in top 100, ours is just one, State Bank of India, so our banks private or public are very small. If se banks don't become big n who will fund investments? So it is important that we encour banking system", said Sanyal while explaining importance of growth of Indian banks.

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Sanyal reiterated completion of cleaning process of banks which brought various banking scams to surface. "We have cleaned banking system from past 5-6 years, had we suddenly started expanding banks in 2012-13 re would have been even bigger turmoils and scams. We saw many scams come to light. We have cleared majority of issues after which  regulation and capitalization is better in banks w", said Sanyal.

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principal advisor also spoke on 'Ease of doing business' saying that 'contract enforcement' is slow in India and number of approvals required is huge as compared to or nations due to which  time taken to start a new business is more in India as compared to or nations. "If you want to open a restaurant in Delhi you require 26 permissions, whereas Singapore and China require only 4. And se 26 permissions is also a tedious process. So complex web of rules and regulations was imposed for decades which needs to be phased out", said Sanyal while speaking of furr improving Ease of Doing business ranking.

India's ascending journey in Ease of doing business

India has ascended to 63rd rank in 2019 in World bank's ease of doing business index. India was also among top 10 performers on 2019 list for third year in a row. A seven-year trend shows that India has been on path of improvement with regard to ease of doing business. In 2013 and 2014, India was ranked 134 which improved to 131 in 2015 and followed by a one-point jump to 130 in 2016. India jumped drastically by 30 places to 100th rank in 2017. In 2018, country jumped ar 23 places to reach 77th rank which has been furr improved by ar 14 points to 63rd rank in 2019.

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