Indian Banking system remains resilient, the asset quality has improved from the pre-pandemic levels: RBI Dy Governor

Deputy Governor of the Reserve Bank of India M. Rajeshwar Rao has said that an efficient and vibrant financial system is crucial for the economic development and social well-being of the country.

He further alluded to the geopolitical conflict that has drastically altered the global environment and the context in which monetary policy operates. He was speaking as chief guest at a Banking Conference organised by the Indian Merchants' Chamber in Mumbai today on Banking and Finance sector in India.

Mr Rao further said that the effectiveness of any policy response in crisis situations is critically dependent on the strength of the financial sector balance sheets. Indian Banking system remains resilient, the asset quality has improved from the pre-pandemic levels and the banks are well-capitalized.

The RBI Deputy Governor added that Indian banks at present were at the forefront in supporting the economic recovery and we have to collectively strive to be ahead of the curve in designing and nurturing a financial system that is robust and sustainable.