Banks front & center in every aspect of Indian economy: Bank of Baroda chief Sanjiv Chadha

At the Republic Economic Summit that is being held in the national capital today, October 14, Bank of Baroda Managing Director (MD) and Chief Executive Officer (CEO) Sanjiv Chadha elaborated on why every aspect of the Indian economy has Banks at the front and center. While speaking to Republic Media Network's Executive Editor Rhythm Anand Bhardwaj, Chadha explained the contribution of the Banking sector to India's rapid economic growth. 

Given the illustrious history that Banking has in India, Bank of Baroda CEO Sanjiv Chadha detailed how this sector will contribute to India's 'Mission Superpower' agenda. "There are several ways how we can look at models to understand how India as a financial system works. There are different models in different parts of the world and India, for example, is largely like Europe which is dependent on Banks in the financial sector. So, Banks do have a disproportionate contribution when it comes to the financial system in India."

Bank of Baroda Chief Sanjiv Chadha on contribution of Banking sector in India's economic growth

Further, Bank of Baroda CEO Sanjiv Chadha added that the history of the Banking sector has also carved a way for the country's financial development. "In terms of how the history has played out, Banks today pretty much do the work of DFI (Development Financial Institutions) which was done in the past. They not only provide capital, but they also do a lot of project finance. Then because of nationalisation, Banks are front and center in terms of financial conclusion. You can almost say that in every aspect of the Indian economy whether it is industry, MSME's export sector, and increasingly consumer finance, it is finally assured that banks are front and center. In terms of where we are positioned now, I think we are at a fortuitous time in India's history and the country's financial history." 

Having said that, the Bank of Baroda head honcho even reflected on his thoughts of the harsh COVID times that the country is still grappling with. Explaining how the bank outperformed during the time, Sanjiv Chadha said, "I think that banks have come out much stronger to COVID. The one sector which performed well during COVID and is also poised to outperform is Banks. Partly, it is on the count of the corporate credit cycle  and the challenges that have disappeared in the last few years." 

Image: Republic World