RBI Governor asks bankers to remain vigilant

Mumbai, November 16

Amid global turmoil, Reserve Bank Governor Shaktikanta Das on Wednesday asked bankers to remain watchful of the evolving macroeconomic situation and take measures proactively so that the potential impact on their balance sheets is minimised.

The Governor in his introductory remarks acknowledged the crucial role played by the commercial banks in supporting economic growth throughout the turbulent times since the outbreak of the pandemic and the ongoing financial market turmoil.

Das urged the bankers to remain "watchful of the evolving macroeconomic situation, including global spillovers, and take mitigating measures proactively so that the potential impact on their balance sheets is minimised and financial stability risks are contained." Despite challenges, he said, the Indian banking sector has remained resilient and continued to improve in various performance parameters.

Besides heads of public sector banks and certain private banks, the meeting was also attended by Deputy Governor MK Jain along with a few senior officials of the RBI.

Among other matters, issues relating to lagging growth in deposits vis-à-vis credit growth, asset quality, investments in IT infrastructure, adoption of new-age technology solutions, functioning of Digital Banking Units, were discussed.

As per the RBI data, deposits rose by 9.6% as compared to 10.2% on a year-on-year basis, while credit offtake witnessed a 17.9% jump as against 6.5% a year ago.

The robust growth performance in the first half of the current fiscal has been ably supported by a well-capitalised banking system that witnessed an upswing in credit disbursement to the retail, industry and services segments.

Non-food credit growth almost doubled from 8.7% in March 2022 to 16.4% in September 2022, reflecting not only an acceleration in the growth of current economic activities but also an anticipation of continued acceleration in the future as well. — PTI

Take mitigating steps

Remain watchful of the evolving macroeconomic situation, including global spillovers, and take mitigating measures proactively so that the potential impact on the balance sheets is minimised. — Shaktikanta Das, RBI Governor

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