RBI Governor asks bank chiefs to be vigilant against risk build-up

Das highlighted the issues relating to business model viability, outlier growth in personal loans, adherence to co-lending guidelines, bank exposure to NBFC sector, liquidity risk management, IT and Cyber security preparedness, operational resilience, digital frauds and strengthening of the internal rating framework.

He stressed that customer grievance redress mechanism and protection of customers’ interests are of paramount importance for the safety and stability of the financial system and that of individual financial institutions.

RBI Governor also encouraged the banks to actively participate in RBI’s fintech initiatives and give a further push to the Digital Banking Units (DBUs).

Rating agency ICRA expects gross NPAs and the net NPAs (NNPAs) to decline to 2.8-3.1 per cent and 0.7 per cent, respectively. By March 2025, the gross NPA is further expected to moderate to 2.1-2.5 per cent and the net NPA to 0.5-0.6 per cent.