5 March 2024

Trendy Texts

Business, World, Economy, Tech, Sports News

RBI Governor Shaktikanta Das

RBI Governor Shaktikanta Das: Economy has made a solid recovery

RBI governor Shaktikanta Das, governor of the Reserve Bank of India, stated on Wednesday that the Indian economy has made a “solid recovery” and is one of the fastest-growing big economies. In the current fragile global environment, he stressed the importance of politicians balancing policy trade-offs, ensuring stability, and fostering sustainable growth.

The RBI Governor Das stated in the Financial Stability Report (FSR) foreword that emerging risks have demanded a revision of global standards for financial sector regulations. According to the FSR, in a baseline scenario, the ratio of non-performing assets (NPAs) to total loans is expected to rise to 3.6% by March 2024, from a 10-year low of 3.9% in March 2023. A baseline scenario depicts a situation in which macroeconomic conditions are consistent with expectations and do not deteriorate.

RBI governor Shaktikanta Das Warned 

However, the RBI warned that if economic conditions worsen, the gross NPA ratio of banks, which reflects a bank’s problematic loans, might rise to 4.1% and 5.1%, respectively, under medium and severe stress scenarios. Nonetheless, the report guaranteed that all banks would be able to achieve the minimum capital requirements even in the face of adverse stress scenarios.

RBI Governor Shaktikanta Das

As previously said, financial stability is non-negotiable, and all players in the financial system must work together to maintain it. RBI Governor Das emphasised India’s financial sector’s stability and resilience, as seen by continuous expansion in bank loans, low levels of NPAs, and appropriate capital and liquidity buffers. RBI governor Shaktikanta Das stated that the balance sheets of both the banking and corporate sectors had been reinforced, resulting in a “twin balance sheet advantage” for growth.

Also Read: Tata Technologies IPO GMP, Expected price, other details and benefit for Tata Motors