The Reserve Bank of India, Mr.Shaktikanta Das held meetings on Wednesday (November 16, 2022) with the MD & CEOs of Public Sector Banks and certain Private Sector Banks. RBI Deputy Governor M. K. Jain and some senior officials of the central bank also attended the meeting.
In the meeting, the Governor asked the Chiefs of lending institutions of the country to remain watchful of the evolving macroeconomic situation, including global spillovers, and take mitigating measures proactively to minimise any impact on their balance sheets and to contain financial stability risks.
During the month of September, this year, Mr.Das said that “We have to think of the worst and do our best…”. Das underscored then that such a step was needed to fund the demand for loans, which has been growing at a healthy clip.
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. He further stated that despite challenges, the Indian banking sector has remained resilient and continued to improve in various performance parameters. He advised the banks 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.
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, etc. were also discussed.