Risk propensity should be in alignment with the individual bank’s measured risk-appetite,” Das said. According to RBI data, bank credit growth moderated further to 5.5% during the fortnight ended July 31 compared with 5.8% in the preceding two weeks. Das assured that RBI will not look at unwinding the countercyclical measures to stimulate demand once the pandemic is under control and will craft a cautious exit plan. RBI, in its financial stability report, said capital adequacy ratio for lenders could fall to 11.8% by March 2021 down from 14.6% in March 2020. On policy options, Das said, “We have not exhausted our policy options, whether it relates to rate cuts or any other aspects of central banking.

Source: Hindustan Times August 28, 2020 00:29 UTC