Banking sector’s wishlist for Union Budget 2024: Key expectations outlined by 4 top experts

Finance Minister Nirmala Sitharaman is gearing up to present India's FY24-25 Union Budget on July 23, 2024. Despite diminishing direct impact on equity markets in recent years due to external reforms, this Budget holds pivotal significance for stimulating economic growth. Marked as the first full-year Budget under NDA 3.0, expectations are high among market participants for its potential impact on the economy and financial markets.\r

The banking sector, in particular, anticipates policy changes to bolster growth, ensure financial stability, and advance digitalisation efforts. Industry experts like Deepak Jasani from HDFC Securities advocate for divestment in public sector banks and seek fiscal deficit reductions to ease borrowing costs. Atul Parakh of Bigul underscores the need for NPA resolutions and capital infusion strategies, while Jyoti Prakash Gadia of Resurgent India emphasizes sustainable credit growth and deposit mobilisation. Overall, the Budget is poised to address diverse banking sector needs, aiming to fortify economic foundations and foster inclusive growth across key sectors like SMEs and green financing initiatives.