Follow prudential norms for credit without being excessively conservative: Das to banks

New Delhi: Reserve Bank of India Governor Shaktikanta Das has asked Public Sector Banks to extend credit while observing prudential norms without getting excessively conservative.

During his interaction with the chief executive officers (CEOs) of the state-owned banks, Das noted the importance of PSBs for the economy at all times and especially at the present juncture in helping meet broader economic goals.

He also flagged the need for PSBs to extend credit while observing prudential norms but without excessive conservatism.

He also asked banks to take advantage of the MSME restructuring scheme to support viable MSME units.

The Governor flagged the need for further strengthening various aspects of banking, including underwriting standards, capacity building, use of technology and governance.

Earlier, Finance Minister in his meeting with PSBs too had highlighted the need for each and every PSB to ensure that recent gains are sustained and better service delivered to all stakeholders.

PCA banks were advised to maintain the trend of improvement in performance, with a view to bringing them out of the PCA framework at the earliest. In this connection, the significant reduction in NNPAs and significant de-risking of their credit portfolios during the current financial year were taken note of.