Finance Minister Pranab Mukherjee on Sunday said Indian banks stood on a firm footing even as their global counterparts in the U.S. and Europe collapsed under the weight of the financial crisis.
Speaking during the inauguration of a branch of Dena Bank here in Murshidabad district, around 250 kms from Kolkata, Mr. Mukherjee said Indian banks do not chase hot money and hence, don’t fall prey to asset bubble.
Referring to the recent financial crisis that hit America and spread across the globe, Mr. Mukherjee pointed out that the country’s banking system was not involved in speculative activities like its counterparts in the U.S. and Europe.
He praised the banking system for helping the nation achieve an inclusive growth.
On growth prospects, he said that in the just concluded fiscal year, the GDP growth is expected to be around 7.2 per cent while in the current financial year, the GDP growth would be around 8.5 per cent.
Mr. Mukherjee said the declining trend in GDP growth has been arrested due to various tax breaks given by the government.
Earlier in the day, Mr. Mukherjee inaugurated a branch of Central Bank of India at Margram in the same district.