RBI Governor Underlines SBI Growth
- RBI Governor Sanjay Malhotra declared that the State Bank of India has joined the $100 billion club. He said SBI's feat became possible as it was able to overcome losses recorded in the year 2018, thanks to crucial reforms introduced by the Reserve Bank of India.
- Malhotra shared this information at the SBI Banking and Economics Conclave 2025 held in Mumbai.
- RBI's policy reforms strengthened the banking system.
- According to Malhotra, the regulatory framework and policy decisions of RBI have made the domestic banking sector stronger. These reforms have strengthened the quality of assets, borrower discipline, as well as lending practices.
- He highlighted the following: the Insolvency and Bankruptcy Code, 2016, along with out-of-court settlement mechanisms, has been a big factor in transforming the processes of loan recovery and resolution.
Long-Term Measures to Establish a Stable Banking System
Since 2014, the RBI has attempted to convert banking crises into opportunities by bringing in long-term structural measures, said Malhotra.
These include:
- Merging and reducing the number of public sector banks from 27 to 12 by 2020.
- Recapitalizing banks with enough funds.
Strengthening of balance sheets through improved financial management. Healthy lending environment in the system as a whole. He informed that stabilization of and strengthened Indian banking infrastructure through these coordinated efforts has translated into record growth and financial resilience for banks like SBI.
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