‘Banking resilient, but watch macroeconomic situation’

NEW DELHI: Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday said despite challenges, the Indian banking sector has been resilient and improved in various performance parameters.

At the same time though, he asked public as well as private sector banks to remain watchful of the evolving macroeconomic situation and take necessary mitigating measures to minimise their impact on balance sheets and contain financial stability risks.

Das made these remarks during a review meeting with Chairpersons of public sector banks and some private sector banks, which was also attended by other senior officials of the RBI.

He acknowledged the crucial role played by the commercial banks in supporting the economic growth throughout the turbulent times since the outbreak of pandemic and the ongoing financial market turmoil, official sources 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 in the meeting, they added.