Reserve Bank of India (RBI) Governor Shaktikanta Das remarked on Thursday that India’s banking sector has emerged stronger from the challenges posed by the COVID-19 pandemic and geopolitical disruptions. Speaking at the Mint BFSI summit in Mumbai, Das highlighted the improved key indicators of scheduled commercial banks (SCBs), including capital adequacy, asset quality, and profitability, over the last four years. He emphasized the broad-based credit growth supported by strong financial fundamentals. Despite previous issues, such as high levels of non-performing assets (NPAs) and negative returns on assets and equity, the banking system has shown resilience. Das credited the collective efforts of the central bank, regulatory initiatives, and banks strengthening internal defense mechanisms. The successful turnaround, amidst global headwinds, reflects the mutual goals of price stability, sustained growth, and financial stability for the Indian economy, Das concluded.
To provide immediate debt service relief to borrowers whose income-generating ability was impaired by the lockdowns, a moratorium on repayment of loans was provided to all eligible borrowers, initially for a period of three months, which was subsequently extended by another three months, taking the total to six months from March 2020 to August 2020.
