Reserve Bank Governor Shaktikanta Das said that the current economic conditions may pose certain challenges to banks, and urged them to be proactive in tackling them. Speaking to heads of major state-run banks here, Das noted there has been “improvement” in the banking sector and it remains “resilient”. The remarks come amid a slowdown in economic growth to a six-year-low at 4.5 per cent for the September quarter. The RBI has also cut its growth estimate sharply to 5 per cent for the fiscal year.
“Governor noted that there has been some improvement in banking sector and the sector remains resilient even though current economic conditions may pose certain challenges. He urged the banks to proactively tackle the emerging challenges swiftly, particularly with regard to the stressed assets resolution in a co-ordinated manner,” an RBI release said.