The government is in favor of banks working in tandem with non-banking financial companies (NBFCs) and fintech To give co-lending to companies and also take the digital route forward, an official said. Hardik Mukesh Sheth, Director (Banking Operations), Department of Financial Services, said at a CII event on Friday that the government is encouraging public sector banks (PSBs) to work closely with NBFCs and fintech companies. co-lending area.

He also said that there is a push towards the digital route as well, adding that there has been an increase in new age banking using technology.

“There has been an increase in loan disbursement using the digital channel,” Sheth said.

All the 12 PSBs are making profits, and their non-performing assets (NPAs) have halved due to recovery, the official said. “None of the 12 public sector banks are subject to prompt corrective action (PCA) Of reserve Bank of India,” They said.

Echoing the same, MD & CEO of Yes Bank Prashant Kumar said that NBFCs are important not only for financial inclusion but also for increasing credit offtake. He said that fintechs are able to understand the behavior of customers while banks enjoy their trust.

According to Kumar, fintechs can help banks increase efficiency and collaboration between them can go a long way in increasing the credit of lenders.

K MD state Bank of India ,State Bank Of India), International Global Markets, C Srinivasulu Setty said that it is important to combine the trust of banks and the technology of fintech companies to serve the customers.

“It should be on an ongoing basis. Banks are spending money to resolve the issue,” he said.