RBI Governor Shaktikanta Das says slowing credit offtake one of major challenges for banks

Reserve Bank Governor Shaktikanta Das on Monday said slowing credit growth is one of the major challenges that banks are facing currently

Press Trust of India February 24, 2020 19:09:18 IST
RBI Governor Shaktikanta Das says slowing credit offtake one of major challenges for banks
  • Loan growth in the system is hovering around 7 percent

  • RBI Governor Shaktikanta Das asked banks to be prudent in lending and highlighted that the quality of appraisal is important

  • Credit flow to realty sector needs to improve, he added

Mumbai: Reserve Bank Governor Shaktikanta Das on Monday said slowing credit growth is one of the major challenges that banks are facing currently.

Loan growth in the system is hovering around 7 percent.

"Slowing credit offtake is one of the challenges that banks are facing," Das said at the Mint annual banking conclave here.

RBI Governor Shaktikanta Das says slowing credit offtake one of major challenges for banks

File image of RBI governor Shaktikanta Das. News18

He also asked banks to be prudent in lending and highlighted that the quality of appraisal is important.

He said that the RBI proposes to take thematic studies across financial institutions.

"Top 50 NBFCs are monitored very closely," he pointed out.

Speaking about NBFCs, he said that credit flow to small NBFCs have improved over the last one year. "Flow of credit has stabilised and is showing steady improvement," Das said.

Credit flow to realty sector needs to improve, he added.

He mentioned that the issue of governance in public and private sector banks is of utmost importance and the management of banks have a critical role to play in improving the governance.

He noted that the regulations are in compliance with Basel III guidelines.

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