The Reserve Bank of India (RBI) is scheduled to meet top public sector bankers today and credit growth would be on top of the agenda. This is a delayed post policy meeting with the bankers.
Bank credit push is something that the finance ministry and the RBI have constantly been speaking with the bankers about. Last week, the finance minister urged PSU bankers to take more concrete steps to ensure more credit is pushed to the relevant sectors of the economy.
In the last policy, the RBI announced two specific steps to ensure that there is more room to autos, to housing, to MSMEs and to take stock that the Central Bank would be meeting with top bankers today.
Most likely it would be the head of public sector banks that would be present at the meeting.
Credit growth has now slowed down to about 8.5 percent as of January compared to some 13.5 percent growth that we saw in bank credit for the same period last year.
Besides that the central bank would take a feedback on the recent policy announcements, as well as discuss about rate transmission because some loans are linked to the repo rates whereas others still remain linked to MCLR, and that is where RBI wants to push bankers to ensure that it does the transmission.
Support to MSMEs and digitisation are some of the other key topics that would be likely looked at today.