Banks need to ensure appropriate risk pricing, sound underwriting and a clear assessment of borrowers’ repayment capacity to sustain growth, Reserve Bank of India (RBI) Deputy Governor Swaminathan J said.
Delivering a speech at the Leadership Conference of Indian Bank in Chennai last month, he emphasised that a stable and diversified deposit franchise is equally important to support credit expansion.
The speech was uploaded on the RBI website on Tuesday.
Swaminathan said one of the most valuable contributions of senior management is to identify talent, entrust people with responsibility and prepare them to exercise independent judgement.
“This involves more than formal succession planning.
It requires creating opportunities for younger colleagues to take initiative, learn from experience and develop the confidence to lead.” Growth is essential to the banking sector’s role in supporting India’s economic development, but it must be balanced, appropriately funded and consistent with long-term institutional strength, he said.
“Growth remains essential to the banking sector’s role in supporting India’s economic development.
However, its sustainability depends on sound underwriting, appropriate risk pricing, and a clear understanding of borrowers’ repayment capacity,” he said.
Swaminathan also highlighted how changing household savings preferences and greater choices among financial products were altering the environment for deposit mobilisation.
Banks now operate within a wider financial ecosystem comprising fintech companies, technology platforms and other service providers, creating new opportunities for collaboration while changing competitive dynamics.
He said technological developments, including digital payments, artificial intelligence....
