Stressed assets, Covid recast: RBI, bank chiefs meet.
Even as the second wave of the Covid pandemic hit the country and states started imposing stringent curbs including lockdown, Reserve Bank Governor and other top officials met the chiefs of commercial banks on Monday to take stock of the situation in the financial sector, especially in maintaining business continuity and tackling stressed assets.
RBI Governor Shaktikanta Das advised the banks to remain watchful of the evolving situation and continue taking measures proactively for maintaining their business continuity, sharpening business strategies and raising adequate capital for strengthening balance sheets. He also touched upon the importance of credit flows in sustaining the nascent economic recovery. With fears mounting over a rise in bad loans, credit growth had remained sluggish and came down to 5.6 per in FY21 as against 6.1 per cent in the previous year.