Union Finance Minister Nirmala Sitharaman made a strong case for affordable bank interest rates, saying high borrowing costs are holding back both borrowers and industries. At the SBI Annual Business and Economic Conclave, she explained that high interest rates make it tough for industries to grow and invest in building new capacities.
“India needs industries to expand and boost their capabilities to meet growth demands. But borrowing costs are a major hurdle for many. Banks must work on making interest rates more affordable,” Sitharaman urged, signaling that the government is ready to tackle this pressing issue head-on.
Banks Should Prioritize Lending, Not Insurance Sales
Sitharaman also called out banks for focusing too much on selling insurance instead of lending, which is their core job. She pointed out that “misselling” insurance often increases the overall cost of borrowing, adding extra stress on borrowers who are already struggling. Her message was clear: banks should stick to what they do best—lending.
SBI to Open 500 New Branches by FY 2025
On a brighter note, Sitharaman announced that the State Bank of India (SBI) will open 500 new branches in FY 2025, expanding its massive reach even further. With its current network of 23,000 branches, 6,580 ATMs, and 85,000 banking correspondents, SBI is already a powerhouse. This move aims to make banking services even more accessible across the country.
She praised SBI’s impressive growth and its role in government initiatives like Jan Dhan Yojana, PM Suraksha Yojana, Jeevan Bima Yojana, and Atal Pension Yojana, which have made financial inclusion a reality for millions.
Digital Banking Revolution at SBI
Sitharaman didn’t stop there—she also highlighted SBI’s leap into digital banking. The bank now serves over 50 crore customers, with 13.2 crore using internet banking and 8 crore relying on its digital app. Remarkably, SBI’s infrastructure can handle 20 crore UPI transactions per day, which is more than the population of some countries.
Confidence in India’s Economic Future
Despite domestic and global economic challenges, Sitharaman reassured everyone that the government is on top of the situation. She dismissed “undue concerns” about a slowdown, expressing confidence in India’s growth story.
By pushing for lower interest rates, growing banking access, and embracing digital transformation, the government is laying the groundwork to support industries, expand financial inclusion, and build a resilient economy.
