FM sees strong growth potential for Indian banks

Finance minister Pranab Mukherjee, on Saturday, told Indian banks to push for growth and expansion in the year. Mukherjee was speaking for the first time in Mumbai after pr esenting the budget in parliament in July.
 
He said that Indian banks are now well positioned to take full advantage of the chances coming their way. Mukherjee pitched his speech well up to the expectations of bankers and industrialists who said that domestic banks need to expand their footprint to become globally effective.

He made the government's position clear regarding the economy having weathered the global downturn and the time being right for banks to expand their role. 

He said the government had noted better-than-expected GDP numbers for the financial year 2008-09 that has improved market sentiment and industrial production in the last two months of the current financial year.  

The government has already put in place a number of measures to stimulate growth in the domestic banking sector. During the budget presentation, Mukerjee had said that public sector entities would tap the equities market to finance their expansion plans. SBI's plan for merger of State Bank of Indore is on the minister's table for approval. 

Bank chiefs who were present in full attendance at the event carefully measured the ministerr's comments in the context of the upcoming policy. SBI chairman OP Bhatt who won the banker of the year award said that there was a need for more than three or even four banks of the size of SBI. 

Chanda Kochhar, managing director, ICICI Bank said banks had moved up he learning curve and there would definitely be a recovery in the banking industry, She added that