Chiefs of major banks are meeting Rakesh Mohan, deputy governor, Reserve Bank of India (RBI) on Tuesday to discuss the pressing issues of the banking industry on the eve of the first quarterly review of the annual monetary policy, which was slated for July 29.
The IBA delegation will be led by IBA chairman TS Narayanasami, who is also the CMD of Bank of India. Some of the other bankers that are likely to be the part of the delegation include State Bank of India chairman OP Bhatt, Punjab National Bank CMD KC Chakrabarty, Bank of Baroda CMD MD Mallya, India head of Bank of America Vishawir Ahuja, and Aditya Puri, vice chairman and managing director of HDFC Bank.
Requesting anonymity, the chief of a state-run bank told FE that inflation, which touched a mark of 11.63% for the week ended on June 21, was really a serious concern before bankers today and hence the issue will figure prominently during the bankers’ meet with the RBI.
Some of the other issues that were likely to come up during the meeting include the debt waiver scheme and the credit growth scenario in the country.
The waiver scheme has already been implemented by the banks as on June 30, which was the deadline for the same. The scheme will help the banks reduce their NPAs in the farm loan sector.
The credit offtake was all set to moderate for the first quarter due to high interest rates. The bankers expect that high interest rates and a subsequent fall in credit growth are all set to hit the banks when they announce their first quarter results later this month.
