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India’s Central Bank Urges Lenders to Be Less Averse to Risk

  • Das says being overly risk-averse is self-defeating for banks
  • A loan moratorium is due to expire at the end of August
Updated on

India’s central bank chief said it’s crucial for lenders to build sufficient loan provisions and become less averse to risk so they can help the economy recover from the pandemic-induced economic slump.

The nation’s banking sector remains stable but lenders need to revise their business strategies, Reserve Bank of India Governor Shaktikanta Das said Thursday. Remaining overly risk-averse is “self-defeating” for banks, Das said during an event organized by the Business Standard newspaper.