India's economic resilience stands out amidst uncertain global environment: Sitharaman

Pune (Maharashtra) [India], September 25 (ANI): Union Finance Minister Nirmala Sitharaman has said that India’s resilience stands out amidst an uncertain global environment and several favourable factors, including a young demography and domestic demand, provide core strength to the Indian economy to withstand global spillovers and grow at a higher aspirational trajectory.

Addressing the 91st Foundation Day celebrations of Bank of Maharashtra, she said India’s resilience is not accidental and reflects proactive fiscal and monetary policies, structural reforms, improved governance and enhanced competitiveness over the last decade.

“Amidst this uncertain global environment, India’s resilience stands out. Several favourable factors, such as strong macroeconomic fundamentals, a young demography and greater reliance on domestic demand, provide core strength to the Indian economy to withstand global spillovers and grow at a higher aspirational trajectory. Post-COVID, India rebounded strongly, recording an average annual growth of about 8% during 2021-22 to 2024-25. It stood out as the fastest-growing major economy in the world,” Sitharaman said.

“This economic resilience has continued, with India’s GDP growing by 7.8% in the April-June quarter. India’s resilience is not accidental. They reflect proactive fiscal and monetary policies, bold structural reforms, massive infrastructure creation, both physical and digital, improved governance and enhanced competitiveness over the last decade,” she added.

Sitharaman noted that S&P upgraded India’s sovereign credit rating to ‘BBB’ (from BBB-) in August 2025 after 18 years, and Morningstar DBRS upgraded us to ‘BBB’ from BBB (low) in May 2025. Recently, Japanese credit rating agency, Rating and Investment Information, Inc. (R&I), upgraded India’s long-term sovereign credit rating to ‘BBB+’ from ‘BBB’.

The minister noted that Bank of Maharashtra’s Return on assets (RoA) of 1.8% in FY 2024-25 is way ahead of the average RoA of Public Sector Banks, which stood at 1.1%.

“The bank’s Cost to Income Ratio (CIR) for FY 2024-25 stands at 38.4%, which is not only the lowest among Public Sector Banks (PSBs), where the average CIR is 50.1%, but also surpasses the majority of private sector banks. Additionally, a CIR below 40% is globally regarded as an excellent benchmark. Similarly, bank’s CASA ratio of 53.3% is the highest among Public Sector Banks (PSBs), where the average CASA ratio is 38.8%, and it also surpasses the majority of private sector banks,” she said.

The minister said that as of June 30, 2025, Bank of Maharashtra’s Gross NPA stood at 1.74% and Net NPAs stood at 0.18%, at a multi-year low.

“Provision Coverage Ratio improved to 98.36%. – Total Business grew by over 14% on Y-o-Y basis to Rs 5.46 lakh crore. – Total Deposits increased by over 14% on Y-o-Y basis to over Rs 3 lakh crore. RAM (Retail, Agri and MSME) Business improved to 62.10% of Gross Advances. – Retail advances grew by 35% to Rs 71,966 crore on Y-o-Y basis. MSME advances grew by 5.65% on Y-o-Y basis,” she said.

She noted that the bank has helped open 1.21 crore Jan Dhan accounts, expanding access to formal banking. Under social security schemes, over 55 lakh people enrolled in the PM Jeevan Jyoti Bima Yojana, 1.16 crore in the PM Suraksha Bima Yojana, and 17.7 lakh subscribed to the Atal Pension Yojana.

The bank has also been active in supporting entrepreneurship and livelihoods. Nearly Rs 33,000 crore has been disbursed under PM MUDRA loans to around 46 lakh accounts, while Stand Up India has provided nearly Rs 1,200 crore to over 5,300 beneficiaries as of March 31. Additionally, more than 1.67 lakh street vendors received credit support under the PM SVANidhi scheme. These initiatives underscore Bank of Maharashtra’s vital role in promoting financial inclusion and supporting India’s grassroots economy.

Sitharaman said that with uncertainty remaining a defining feature of the global landscape, the role of banks becomes even more critical, not just as custodians of savings, but as engines of growth, providing the finance and support that businesses and entrepreneurs need to navigate volatility, seize opportunities and drive innovation.

“One principle which we can never forget to adhere is adhering to the core principle of customer trust which is the foundation of banking. Every complaint must be seen as an opportunity to improve, innovate and reinforce trust. Grievance redressal must go hand-in-hand with root cause analysis, systemic corrections in products, processes and conduct, and a commitment to ensure the same complaint does not arise again,” she said.

The minister said that the success of UPI shows what interoperability can achieve.

“A recent IMF note highlights the potential of UPI’s interoperable design as a model for the world. It is, however, important to remember that digitalisation alone is not enough. Integrity, empathy and human judgment remain irreplaceable,” she said.

The minister said that in the macroeconomic and also overall economic performance, the performance of Indian banks stands out particularly well. (ANI)

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