GENERAL23 Sept 2026
Principal Secretary to PM cautions banks against lending euphoria, urges focus on project viability
The Principal Secretary to the Prime Minister, P.K. Mishra, told banks in Mumbai to check a project's real economics before lending, not the mood of the market. He warned that past loose lending forced the system to spend years cleaning up bad loans. It matters because banks now have strong liquidity and low bad loans, so careless lending could repeat that cycle.
Key Statutory Highlights
- P.K. Mishra, Principal Secretary to the Prime Minister, spoke at the SBI Banking and Economics Conclave in Mumbai on Wednesday.
- He said credit must be appraised against the economics of the project rather than the enthusiasm of the moment.
- The banking system's gross non-performing assets ratio fell below 1% in the first quarter of fiscal 2027, compared with nearly double-digit levels about a decade ago.
Actionable Advice for Taxpayers / Founders:If you plan to raise bank funding soon, keep clear project numbers, cash flow and repayment workings ready, and ask your CA to review the proposal. Do not assume the current easy liquidity will continue.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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