Firm credit growth reflects India's underlying economic fundamentals: Das

In inflation forecasting it is important not only to get the number right, but also the speed and direction of the inflationary momentum

BS Reporter
Last Updated at March 24, 2023 06:09 IST

Shaktikanta Das, Governor, Reserve Bank of India (RBI)

Amid much debate over whether the current firm growth in bank credit is sustainable, Reserve Bank of India (RBI) Governor Shaktikanta Das believes that loan growth is far from exuberant and instead, reflects the underlying fundamentals of the Indian economy. The RBI is carefully monitoring the gap between deposit growth and credit growth, and a key factor to be considered is that the boom in credit over the last few months comes on the back of a sharp decline in loan growth during the Covid-19 crisis, Das said at the Business Standard BFSI Insight Summit in December, in a fireside chat with Tamal Bandyopadhyay, Consulting Editor, Business Standard. Even as the world recovers from multiple crises such as Covid-19 and the Ukraine-Russia War, India’s economy continues to show resilience while the central bank has its sights trained on ensuring that inflation remains under control, Das said. Edited excerpts:

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