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Informist, Thursday, Nov. 6, 2025

 

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--Banking Secy: Banks' credit mechanism should be robust, reviewed regularly 
--Banking Secy: Banks should target MSME, agri for credit 
--Banking Secy: Risk mechanism of banks should be dynamic 
--CONTEXT: Banking secy Nagaraju's comments at event in Mumbai 
--Banking Secy: Banks should not take risks to achieve growth
 

 

NEW DELHI – The growth of the banking sector is necessary to meet India's Viksit Bharat aim of becoming a developed nation by 2047, but banks should not take risks to achieve high growth, Department of Financial Services Secretary M. Nagaraju said Thursday. Indian banks must ensure that their risk mechanism is dynamic to manage business, Nagaraju added.

 

With a strong risk mechanism, banks can inspire confidence among people that their deposits are going to be safe, Nagaraju said at State Bank of India's Banking and Economic Conclave in Mumbai. "Ultimately, the risk system and the assurance system should be in place," Nagaraju said. This will also help bolster financial inclusion in India, another key agenda to meet the Viksit Bharat 2047 target, the secretary added.

 

Other than the risk mechanism, banks should also review their credit mechanism regularly to make it robust, Nagaraju said. Banks must also target providing credit for micro, small, and medium enterprises and the farm sector, Nagaraju said. "As we evolve, there could be more niche banks of different segments, specialising in products, regions and population," the secretary said.

 

The world has been uncertain, so the banking sector must step up its risk management capacity and capital planning, Nagaraju said. "We need to have an adequate size of growth capital to manage the uncertainties," Nagaraju said. "You need growth capital, you need buffer capital, and robust risk management system."  End

 

Reported by Krity Ambey, Sagar Sen, Anshul Choudhary

Edited by Ashish Shirke

 

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