RBI Guv Shaktikanta Das to meet CEOs of banks today

New Delhi: Reserve Bank Governor Shaktikanta Das will hold a meeting with CEOs of public sector banks on Wednesday to discuss issues concerning slow deposit growth and sustainability of high credit demand.

As per the Reserve Bank of India (RBI) data, deposits rose by 9.6 per cent as compared to 10.2 per cent on a year-on-year basis, while credit offtake witnessed a jump of 17.9 per cent as against 6.5 per cent a year ago. According to an agenda circulated for the meeting, sources said, sustainability, including pricing and slow growth of deposits, would be discussed. There would be deliberation on asset quality in the retail and MSME segment, sources said. Besides, the meeting would also review the functioning of Digital Banking Units launched by Prime Minister Narendra Modi last month.

The robust growth performance in the first half of the current fiscal has been ably supported by a well-capitalised banking system that witnessed an upswing in credit disbursement to the retail, industry and services segments. Non-food credit growth almost doubled from 8.7 per cent in March 2022 to 16.4 per cent in September 2022, reflecting not only an acceleration in the growth of current economic activities but also an anticipation of continued acceleration in the future as well. The growth in credit to industries has been driven by an increase in bank credit to MSMEs aided by the ECLG scheme. In August, the Union Cabinet approved an additional Rs 50,000 crore under the Emergency Credit Line Guarantee Scheme (ECLGS) to ensure low-cost credit flow to hospitality and related segments hit hard by the Covid-19 pandemic.