‘Report on corp in banking is by a panel, not RBI’s view or decision’

Mumbai: Despite ignoring high inflation for now, RBI governor Shaktikanta Das was adamant that it remains a top priority. Das added he is continuing with the accommodative stance as he sees a short-term window, when food prices come down during winter, for the government to address supply side issues and tame inflation. In his first press interaction after the pandemic, he spoke on various policy issues...
Is the RBI differentiating between granting bank licences to corporates and NBFCs owned by corporates?
It is a report by an internal working group (IWG) of the RBI.It should not be seen as the RBI’s point of view or decision. The IWG had two external members and has acted independently. The RBI has not taken any decision on this. Our approach is consultative. After receiving comments, we will take a considered decision.
In bank resolution, has the RBI stance on bondholders of weak banks changed from the past?
We take a decision first in the best interest of depositors — that is the RBI’s paramount responsibility. All our actions are within the legal framework and as per regulatory guidelines. Since both cases (Yes Bank and Lakshmi Vilas Bank) are currently sub judice, I would not like to elaborate further. There is no fixed template as the situation is different from bank to bank.
Is the worst yet to come on bad loans?
We have made our internal estimates and the financial stability report will be released in the last week of December 2020, where we will spell out our assessment of non-performing assets. In the last report, we had given a scenario — compared to that, the economy has recovered much faster than anticipated at that time.