'We have made suggestions about taxation, certification, improving credit growth, increasing financial market sufficiency,' said SBI Chairman Rajnish Kumar who is also the current head of Indian Banks' Association
NBFCs suggested to FM that the industry's over dependence on banks needs to be reduced
New Delhi: SBI Chairman Rajnish Kumar on Monday said the bankers have highlighted issues, including taxation, credit growth, certification and steps for increasing financial market efficiency with Finance Minister Nirmala Sitharaman during a pre-Budget meeting.
"We have made suggestions about taxation, certification, improving credit growth, increasing financial market sufficiency. We have suggested measures to attract investors in financial market," Kumar told media after the meeting.
The SBI chief is the chairman of the banking industry body - Indian Banks' Association (IBA) for 2019-20. IBA represents banks' interests with the government and regulators.
In a separate statement, Finance Ministry said the main areas of discussion during the meeting included issues namely, increasing credit off-take from banks, governance changes in PSBs with special focus on PJ Nayak Committee recommendations, creation of a well-functioning bond markets, benefits of partial credit guarantee scheme, alternative investment funds in the real estate sector, measures for alleviating stress among NBFCs among others.
NBFCs, too, made presentation to the Finance Minister. Raman Agarwal of FIDC, the all India association of NBFCs, told media that though the government has taken several steps for improving liquidity for NBFCs, the funding paid for NBFCs, however, continues.
"We have suggested to FM that our over dependence on banks needs to be reduced. So funding sources would have to be diversified and a refinance window can be created with SIDBI, Nabard or NHB at the helm. And, also for the co-origination of loans is currently restricted to non deposit taking systemic important NBFCs which should be extended to deposit taking NBFCs", Agarwal said.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.