RBI to overview asset high quality of PSBs tomorrow

Days after the Reserve Bank of India (RBI) hiked the repo charge for the primary time in nearly 4 years, governor Shaktikanta Das will meet chiefs of public sector banks (PSBs) on May 17 to overview credit score stream and assess the outlook on asset high quality, sources informed FE.

Das may additionally take inventory of state-run banks’ technique to take care of the rising rate of interest state of affairs with out upsetting development dynamics, they added.

The Governor may also overview PSBs’ assortment efficiencies, client grievance redress mechanism, digital banking items, lending to authorities entities, IT infrastructure and cyber safety framework and any challenge that the lenders might prefer to current, mentioned sources.

“PSBs are preparing presentations on various aspects of their operations. The governor would probably like to have bankers’ feedback as to how they are planning to cope with the new reality of elevated rates and tight liquidity conditions, and what could be the impact on banks’ lending, asset quality and the broader operating environment,” a supply mentioned. fe