Indian RBI Governor Shaktikanta Das on Thursday said that the Indian financial system is in a “much stronger position,” characterised by robust capital adequacy, low levels of non-performing assets, and healthy profitability of banks and non-banking lenders. Underscoring the imperative of fostering a future-ready ethos within the financial sector, Das also stressed the critical role of timely supervisory intervention in mitigating systemic risks.
The RBI Governor said this while delivering an address at the inaugural Global Conference on Financial Resilience organised by the College of Supervisors at the IGIDR Campus in Mumbai. “India’s domestic financial system is now in a much stronger position than it was before we entered the period of the COVID crisis. Indian financial system is now in a much stronger position, characterised by robust capital adequacy, low levels of non-performing assets, and healthy profitability of banks and non-banking lenders, that is NBFCs,” he said.
He added, “I would like to compliment the banks and other financial sector entities for such a stellar performance in the year which has just ended on March 31. There is absolutely no room for complacency because the world is changing, challenges are coming, complexities are growing, and problems can originate from any corner of the financial system within the country, or the world because of something which may be completely unrelated to you and me…” Governor Das began by referencing to global banking failures, including those in the United States, and the challenges faced by institutions like Credit Suisse, emphasizing the lessons learned from such incidents.
He acknowledged the detailed analysis conducted by the US Federal Reserve on bank failures and stressed the importance of proactive regulatory measures to prevent crises. Highlighting RBI’s proactive approach, Governor Das cited the intervention in the Yes Bank crisis as a testament to the central bank’s ability to preemptively address financial instability.
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