Raise capital, lend more: RBI Guv tells banks

Mumbai: RBI Governor Shaktikanta Das has asked banks to take proactive measures to strengthen their resilience and lending capacity by raising capital, the central bank said in a statement on Wednesday. During a two-day meeting with heads of banks, including the private sector lenders, the Governor emphasised on the need to remain vigilant and make provisions against bad loans proactively. Das had held similar meetings in May as well. He had also met with representatives of other financial institutions like NBFCs and microfinance lenders.

The RBI, in its statement, said Das held meetings with the MD & CEOs of public sector banks and select private sector lenders on Tuesday and Wednesday, respectively, through video conferencing. The meetings were also attended by the RBI's deputy governors. During the meetings, Das touched upon the current economic situation and emphasised on the importance of the banking sector in supporting the ongoing revival in economic activities, RBI said.