CII Annual Session 2023: 'Indian banking system remains stable,' says RBI Governor
The RBI Governor further said that the global economy is encountering challenges due to ongoing geopolitical conflicts, increased inflationary pressures, and the tightening of financial conditions as major central banks implement monetary policy adjustments.
FollowReserve Bank of India Governor Shaktikanta Das said that Indian banking system remains stable. The RBI Governor was addressing the gathering at CII Annual Session 2023.
The RBI Governor further said that the global economy is encountering challenges due to ongoing geopolitical conflicts, increased inflationary pressures, and the tightening of financial conditions as major central banks implement monetary policy adjustments.
Addressing the gathering, the RBI Governor said, "Amidst global uncertainties, the Indian banking system remains stable and resilient with strong capital and liquidity positions, improving asset quality, better provisioning coverage and improved profitability."
"The IMF's World Economic Outlook of April 2023 projects global growth to decelerate from 3.4 percent in 2022 to 2.8 percent in 2023 before rising again to 3 percent in 2024," Das said.
"The economic slowdown is, however, concentrated in advanced economies, with the Asia-Pacific region expected to contribute about 70 percent of global growth in 2023. According to the same estimates, India will contribute about 15 percent to global growth in the current year," the RBI Governor further said.
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"Financial markets remain volatile as uncertainty over future monetary policy path is keeping market sentiments on the edge," Das said.
"On the upside, global growth is being supported by the easing of supply chain disruptions, gradual normalisation of energy and food markets, easing commodity prices and reopening of the Chinese economy. Global inflationary pressures are also showing signs of abetment, though they remain well above the target in most of the countries," he further added.
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