Mumbai, September 19, 2024

“Bank of Maharashtra has fulfilled one of the budget announcements by establishing instruments to assess MSMEs based on cash flow. This approach is crucial for understanding MSME’s banking needs and providing effective assistance.” Union Minister of Finance and Corporate Affairs, Ms. Nirmala Sitharaman stated this at the 90th Foundation Day of Bank of Maharashtra in Pune today.

In her address, Ms. Sitharaman highlighted the significant contributions of Bank of Maharashtra, noting Pune's role in inspiring leadership during India’s freedom movement and its impact on the banking revolution. She acknowledged the efforts of the early visionaries who were instrumental in establishing the bank.

The Minister commended the bank for achieving important milestones, including attaining scheduled bank status in 1944 and expanding its reach with the first branch outside Maharashtra in Hubli in 1946. She remarked on the bank’s success in operating three Regional Rural Banks (RRBs), effectively penetrating rural areas and providing access to banking services. "You exemplify a typical public sector bank where inclusivity is a virtue," she stated.

Ms. Sitharaman praised the bank's impressive performance metrics, including a gross Non-Performing Assets (NPA) ratio of 1.88%, significantly below the public sector average of 3.47%. She encouraged other banks to view this as healthy competition.

During the event, she unveiled brochures outlining the bank's new initiatives in business and corporate social responsibility, including the ‘Vision for Bank@100’ focusing on branch expansion and digital innovation, as well as ‘Unlocking Credit for MSMEs - Cash Flow Based Lending’ to support small businesses.

The Minister emphasized the importance of supporting the MSME sector and acknowledged the bank’s recent implementation of a "Cash Flow-Based Lending" model, designed to provide tailored assistance to small businesses based on their cash flow and business cycles.

Aligning with the Prime Minister’s vision for a Viksit Bharat by 2047, which focuses on economic growth, social progress, and good governance, Ms. Sitharaman urged banks to play a vital role in driving these initiatives. She stressed the need for infrastructure funding, expanding access to formal banking services, and ensuring comprehensive insurance coverage for all citizens. “Public sector banks play a crucial role in implementing government insurance schemes like the Atal Pension Yojana and Pradhan Mantri Jeevan Jyoti Bima Yojana, ensuring that these benefits reach the poorest of the poor,” she remarked.

She encouraged banks to ensure that their digital tools and platforms are user-friendly, robust, and reliable. “With 45% of all real-time digital payments occurring in India, the potential for expansion in the FinTech sector is immense,” she noted, adding that seven countries, including Bhutan, Nepal, and Singapore, are using India's Unified Payments Interface (UPI), showcasing opportunities for Indian banks to engage with international businesses.

Furthermore, Ms. Sitharaman stressed the importance of utilizing technology for better credit assessments and customized services. “Monitoring compliance is crucial for building customer trust and ensuring adherence to regulations,” she insisted. She also appreciated the bank's efforts beyond traditional banking, such as wildlife conservation initiatives and support for women in sports, which highlight the humane side of banking.

The Minister also felicitated the All Women’s Volleyball Team recruited by the Bank.

The Minister mentioned the need for customer-friendly banking and emphasized the importance of cyber security in protecting customer data. In conclusion, she expressed her gratitude to all employees, past and present, for their dedication in shaping Bank of Maharashtra.

Secretary of the Ministry of Finance, M. Nagaraju, echoed the need for banks to be customer-friendly and agile, ensuring that grievances are addressed promptly. He underscored the importance of robust cyber security measures to protect customers’ personal information.

The event celebrated the bank’s rich history while unveiling new initiatives aimed at reinforcing its leadership in the financial sector.

 

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