The Indian economy’s formalisation through the Insolvency and Bankruptcy Code (IBC), the goods and services tax (GST), demonetisation and digital payments has enabled better assessment of financial capacity and risks and has unlocked a purchasing power to drive the country’s growth to around 8 per cent, Minister of finance and corporate affairs Arun Jaitley said recently.

Inclusive growth through massive financial inclusion has added to the push, he said while addressing the chief executives and other whole-time directors of public sector banks (PSBs) at the annual review meeting of the banks in New Delhi. A growing economy will help banks grow in strength and banks would need to build their strength to support the lending needs of a growing economy, an official report quoted him as saying. The perception regarding the health of PSBs has become more positive as banks have posted positive results in terms of resolution, recovery, provisioning and credit growth, the Minister noted.