Union Finance Minister Nirmala Sitharaman presided over a meeting on Saturday to assess the performance of government-owned banks. The banking sector’s financial, efficiency, and health metrics were examined. This review meeting took place against the backdrop of increased volatility in the US financial industry as a result of the recent failure of Silicon Valley Bank and several other institutions in jeopardy.
For the record, the Silicon Valley Bank, a significant global lender in the world of technology companies, collapsed on 10 March after a run on the bank, requiring the US federal government to intervene.
Regulators closed the tech lender and transferred ownership to the US Federal Deposit Insurance Corporation(FDIC). The FDIC is currently serving as receiver, which means it will liquidate the bank’s assets to repay its clients, including depositors and creditors.
Union minister Rajeev Chandrasekhar has stated that startups should choose Indian banks as their preferred partners, citing the Indian banking sector’s resilience and strength in the face of the Silicon Valley Bank-led crisis in the US financial system. Union Electronics and IT Minister Chandrasekhar said that the special provisions available at Gift City in Gujarat can be a quick and effective support for Indian startups.
The MoS also said a transfer of bank deposits worth over USD 200 million was already made into GIFT City, Gujarat, which according to him was a sign of the Indian banking system’s growing prominence.