¨ RBI
Governor Sanjay Malhotra highlighted the strength of India's banking system.
¨
India’s banking system was highlighted as
stronger and more stable by RBI Governor Sanjay Malhotra during the 12th SBI
Banking and Economics Conclave in Mumbai.
¨
It was stated that financial stability
remains the cornerstone of the Reserve Bank of India’s policies.
¨
He emphasised that improvements in capital
adequacy, asset quality, and profitability have reinforced the overall health
of the banking sector.
¨
The capital-to-risk weighted assets ratio
increased from 13.5% in 2015 to 17.5%, indicating enhanced financial resilience
in banks.
¨
Gross non-performing assets (NPAs)
declined sharply from over 11% in 2018 to 2.3%.
¨
India has recorded robust capital inflows,
with net inflows of 30.4 billion USD between April and July this year.
¨
He noted that Indian banks today are far
more mature and professionally managed in comparison to a decade ago.
¨
The Governor highlighted SBI’s
transformation from a loss-making entity in 2018 to becoming a
100-billion-dollar company at present.
¨
The RBI Governor highlighted key regulatory
measures like the 2015 Asset Quality Review (AQR), the Prompt Corrective Action
(PCA) framework, consolidation of 27 PSBs, massive recapitalisation, and the
Insolvency and Bankruptcy Code (IBC).
¨ These
initiatives have fundamentally transformed India’s credit culture.
