Slowing credit offtake one of major challenges for banks: RBI Guv
Loan growth in the system is hovering around 7 per cent.
"Slowing credit offtake is one of the challenges that banks are facing," Das said at the Mint annual banking conclave here.
He also asked banks to be prudent in lending and highlighted that the quality of appraisal is important.
He said that the RBI proposes to take thematic studies across financial institutions.
"Top 50 NBFCs are monitored very closely," he pointed out.
Speaking about NBFCs, he said that credit flow to small NBFCs have improved over the last one year. "Flow of credit has stabilised and is showing steady improvement," Das said.
Credit flow to realty sector needs to improve, he added.
He mentioned that the issue of governance in public and private sector banks is of utmost importance and the management of banks have a critical role to play in improving the governance.
He noted that the regulations are in compliance with Basel III guidelines. HV MRMR