He also said that there is also a push towards the digital route, adding that new-age banking using technology has increased.
“There is a rise in loan disbursement using the digital channel,” Sheth said.
The official said that all the 12 PSBs are making profits, and their non-performing assets (NPAs) have halved due to recovery. “None of the 12 public sector banks are under the prompt corrective action (PCA) of the RBI,” he said.
Echoing the same, MD&CEO of Yes Bank Prashant Kumar said that NBFCs are critical not only for financial inclusion but also for raising credit offtake. He said fintechs are able to understand customer behavior while the banks enjoy their trust.
According to Kumar, fintechs can help the banks in raising efficiency and collaboration between them can be a way forward on increasing the credit of the lenders.
MD of State Bank of India (SBI), international global market, C Sreenivasulu Setty said that it is important to combine the trust of the banks and technology of the fintech companies to serve the customers.
“This has to be on a sustained basis. The banks are spending money to address this issue”, he added.