November 19, 2022
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 sheet is minimized.
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 Macro Economic situation including Global spillovers and take mitigating measures actively so that potential impact on their balance sheets is minimized 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 related to lagging growth in deposits vis-a-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% year ago.
The robust growth performance in the first half of the current fiscal has been ably supported by a well capitalized 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 6.4% in September 2022, reflecting not only an acceleration in the growth of current economic activities but also and anticipation of continued acceleration in the future as well.
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