RBI MPC: Deputy governor asks banks to 'redouble' efforts on loan recovery

Recently, RBI said that banks have written off bad loans worth over Rs 2.09 lakh crore during financial year (FY) 2022-23, taking the total loan write-off by the banking sector to Rs 10.57 lakh crore in the last five years.

Reserve Bank of India (RBI) Deputy Governor Swaminathan J on August 10 stressed on the need for banks to redouble their efforts on recovery of written-off loans.

“We would like banks to redouble their efforts and see more recoveries,” Swaminathan said in a post-MPC meeting conference.

The RBI recently said that banks have written off bad loans worth over Rs 2.09 lakh crore in FY2022-23, taking the total loan write-offs by the banking sector to Rs 10.57 lakh crore in the last five years.

Also read: Indian banks write-off Rs 34,428 crore in Q1 FY24

A Moneycontrol assessment of the bank investor presentation in the April-June FY 24 quarter showed that banks wrote off Rs 34,428 crore compared to Rs 44,898 crore a year back.

MPC on repo rate

The monetary policy committee (MPC) has on August 10 unanimously voted to leave the repo rate unchanged at 6.5 percent, Governor Das announced today.

The Standing Deposit Facility rate also retained at 6.25 percent; and Marginal Standing Facility rate, Bank Rate also retained at 6.75 percent.

The MPC has also decided to remain focused on withdrawal of accommodation with preparedness to act should situation so warrant.

The RBI held interest rates unchanged for the third successive time in the current financial year.