NEW DELHI – Indian Finance Minister Nirmala Sitharaman has backed measures taken by the Reserve Bank of India (RBI) to manage the rapid expansion of retail lending. Speaking at the Digital Acceleration & Transformation Expo in New Delhi today, Ms. Sitharaman lauded the central bank’s efforts to maintain a balance between the eagerness of non-banking financial companies (NBFCs) and small financial institutions to growth and the need for financial prudence.
The RBI has been vigilant about the pace of credit growth in the retail sector. RBI Governor Shaktikanta Das, in his Mumbai speech on Tuesday, warned of unsustainable credit expansion. He highlighted the importance of aligning credit portfolio growth with risks and appropriate pricing. Mr Das’ comments are part of a broader strategy to avert a potential crisis that could result from excessive lending.
In line with this prudent approach, Ms. Sitharaman asked public sector banks to focus on their core activities of collecting deposits and providing loans while ensuring that depositors get a fair return . This directive highlights the consistent theme of both prudent and effective financial management within the Indian banking sector. The Finance Minister’s approval demonstrates his commitment to safeguarding the banking sector by encouraging responsible lending practices and protecting the interests of lenders and depositors.
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2023-11-23 09:30:22
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