Current situation may pose some challenges: RBI Guv to banks

Reserve Bank Goverr Shaktikanta Das said on Wednesday that current ecomic conditions may pose certain challenges to banks, and urged m to be proactive in tackling m.

Speaking to hes of major state-run banks here, Das ted re has been "improvement" in banking sector and it remains "resilient".

remarks come amid a slowdown in ecomic growth to a six-year-low at 4.5 percent for September quarter. RBI has also cut its growth estimate sharply to 5 percent for fiscal year.

"Goverr ted that re has been some improvement in banking sector and sector remains resilient even though current ecomic conditions may pose certain challenges. He urged banks to proactively tackle emerging challenges swiftly, particularly with regard to stressed assets resolution in a co-ordinated manner," an RBI release said.

RE | SBI Under-reported B Loans By Rs.11,932 Crore In FY19: RBI Risk Assessment Report

Das also discussed transmission of monetary policy rates into banks' lending rates for final borrowers. It can be ted that even though RBI opted for a status quo at policy review last week, its cuts of 1.35 percent during 2019 are yet to be passed on fully.

flow of credit to productive sectors of ecomy, including n-bank lenders and also small business segments was also discussed at meeting, RBI said.

Outlook on resolution of stressed assets and recovery from loans alrey classified as n-performing assets also featured in parleys.

meeting also discussed progress on deepening digital payments through focused outreach activities by banks to make certain districts in each State or Union territory digitally enabled.

RE | RBI Reveals Massive Foreign Borrowings Jump By India Inc.; Puts Big Numbers Out

RE | Markets End Lower In A See-saw Tre As RBI Surprises With Status Quo