Monday, 30th October 2017

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Slow credit growth a worry: RBI governor Shaktikanta Das

Loan growth in the system is hovering around 7%

By PTI in Mumbai
  • Published 25.02.20, 12:44 AM
  • Updated 25.02.20, 12:44 AM
  • a min read
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Shaktikanta Das also asked banks to be prudent in lending and highlighted that the quality of appraisal is important. (Wikipedia)

RBI governor Shaktikanta Das on Monday said slowing credit growth is one of the major challenges that banks are facing now.

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 an annual banking conclave here.

He also asked banks to be prudent in lending and highlighted that the quality of appraisal is important.

He said the Reserve Bank proposes to take thematic studies across financial institutions.

“Top 50 NBFCs are monitored very closely,” he said.

Speaking about NBFCs, Das said that credit flow to small NBFCs has improved over the last one year. “Flow of credit has stabilised and is showing steady improvement,” Das said.

Credit flow to the realty sector needs to improve, he added.

He mentioned that the issue of governance in public and private sector banks is of utmost importance.