“Remain watchful,” RBI Governor’s advice to heads of banks amid global headwinds

Reserve Bank of India Governor Shaktikanta Das chaired meetings with Managing Directors and Chief Executive Officers of public sector banks and certain private sector banks on Wednesday.

The meetings were also attended by Deputy Governor M. K. Jain along with a few senior officials of the RBI, the central bank said in a statement.

Governor Das 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 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,” the RBI statement said.

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