RBI Governor scrutinizes over the health of banking sector in India

New Delhi, January 28: With just three days to the union budget, RBI Governor Shaktikant Das on Monday had a meeting with the MDs and CEOs of the public sector banks to take stock of the banking sector’s health. Das conveyed to them the regulator’s expectation from the banking sector, ahead of the monetary policy review.

 

“Basically, the idea was 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”, he said post the meeting.

 

Das also said that the meeting was held to know their take on the future outlook of public sector banks. The RBI is however is scheduled to announce its sixth bi-monthly monetary policy for 2018-19 on 7th of February this year. It is also widely expected that the RBI would cut interest rate in its upcoming review meeting.

 

Commenting on the on going clean-up in the banking system, Das had in the earlier week, highlighted that significant progress has been made under the insolvency regime. He had further stressed over the importance to strengthen corporate governance systems in banks.

 

Focussing at the challenges ahead, Das had said that inflation was something that topped the list. “Balancing the objectives of inflation and growth under a flexible inflation targeting framework would warrant careful analysis of every new data,” Das had said after flagging off the divergence between core inflation and headline inflation.