M. Nagaraju, Secretary of the Department of Financial Services under the Ministry of Finance, on Tuesday highlighted the strong performance of India’s banking sector and announced key government support measures aimed at strengthening micro, small, and medium enterprises (MSMEs), particularly in the context of global uncertainties, including developments in West Asia.

Speaking at a Credit Outreach Programme organised by the State Level Bankers’ Committee at Rabindra Satabarshiki Bhawan in Agartala, he said Indian banks—both public and private—recorded a robust growth rate of 15.9% in the previous year, marking one of the highest levels in the country’s banking history. He added that the sector is expected to continue its healthy growth trajectory this year as well.

He further noted that the banking system remains financially strong, supported by a solid capital base and significantly improved asset quality. According to him, non-performing assets (NPAs) have declined sharply and are now below 0.4%, reflecting improved financial discipline and recovery mechanisms.

In response to emerging global challenges, including the situation in West Asia, the government has introduced a credit guarantee programme worth approximately ₹2.25 lakh crore. The initiative is aimed at ensuring easier access to credit for MSMEs across the country, including states like Tripura, thereby strengthening business continuity and economic stability.

He also mentioned that nearly 8,000 beneficiaries were covered during the outreach initiative in areas such as Udaipur and Agartala, with around ₹600 crore in credit being distributed across various sectors.

Reassuring stakeholders about the stability of the banking system, he said there are no major concerns regarding its resilience. While acknowledging the presence of cyber risks, he stated that banks are well-equipped and continuously upgrading their security systems to stay ahead of threats.

Finally, he referred to the government’s social security initiatives launched over the past 12 years under the Prime Minister’s leadership, noting that they have significantly improved financial inclusion and provided stability to rural and economically weaker sections of society.