Follow prudential norms for credit without being excessively conservative: Shaktikanta Das to banks

Das highlighted the importance of public sector banks (PSBs) for the economy at all times

Press Trust of India January 29, 2019 14:10:24 IST
Follow prudential norms for credit without being excessively conservative: Shaktikanta Das to banks
  • He also flagged "the need for PSBs to extend credit while observing prudential norms but without excessive conservatism"

  • Das emphasised the need for further strengthening various aspects of banking, including underwriting standards

  • The RBI is scheduled to announce its sixth bi-monthly monetary policy for 2018-19 on 7 February

New Delhi: Reserve Bank of India Governor Shaktikanta Das Monday asked banks to extend credit while observing prudential norms without getting excessively conservative.

During his interaction with the chief executive officers (CEOs) of the state-owned banks, Das highlighted the importance of public sector banks (PSBs) for the economy at all times and especially at the current juncture in helping meet broader economic goals.

He also flagged "the need for PSBs to extend credit while observing prudential norms but without excessive conservatism".

Follow prudential norms for credit without being excessively conservative Shaktikanta Das to banks

Shaktikanta Das. File photo. PIB

Das emphasised the need for further strengthening various aspects of banking, including underwriting standards, capacity building, use of technology and governance.

"Basically, the idea was to convey to them the regulator's expectation from the banking sector in general and public sector banks in particular, and also to get from them their understanding of the current banking situation, and to get an understanding about the future outlook, the sense they have," Das said after meeting CEOs of PSBs.

The RBI is scheduled to announce its sixth bi-monthly monetary policy for 2018-19 on 7 February. It would be the first monetary policy review under the new RBI Governor.

It is widely expected that the RBI would cut interest rate in its upcoming review meeting.

With softer retail and wholesale price-based inflation, the RBI is likely to change its policy stance to 'neutral' from 'calibrated tightening' in the February policy.

The inflation based on the Consumer Price Index (CPI) eased to an 18-month low of 2.19 percent in December, compared with 2.33 percent in November and 5.21 percent in December 2017.

The Wholesale Price Index (WPI)-based inflation also eased to an eight-month low of 3.80 percent in December, against 4.64 percent in November and 3.58 percent in December 2017.

Updated Date:

also read

Nirmala Sitharaman, Janet Yellen discuss ways to step up bilateral ties at India-USA Economic and Financial Partnership meet
World

Nirmala Sitharaman, Janet Yellen discuss ways to step up bilateral ties at India-USA Economic and Financial Partnership meet

The finance minister and her American counterpart discussed ways to enhance bilateral cooperation in fighting illicit finance, money laundering and terror financing

Banks to be closed for 17 days in November 2021; check complete list here
India

Banks to be closed for 17 days in November 2021; check complete list here

Banking customers should note that the bank holidays will differ in various states and will not be observed by all the banking companies.

Banks to remain closed for six days this week starting today; here's the full list
India

Banks to remain closed for six days this week starting today; here's the full list

This month, a total of 21 bank holidays will be observed, according to RBI guidelines. These include festivals and weekends