In a Sweet Spot

Commercial lenders including NBFCs are on a path of healthy growth despite tightening risk weight norms by the regulator

- Dr Sumitha Nandan

The growing use of technology and the pervasive digitalisation of finance brings forth new challenges in the form of cybersecurity risks. Dr Sumitha Nandan Executive Director Manappuram Finance Ltd

Post-pandemic recovery in the banking sector has many surprises on the upside. The most important eye-opener was the steady growth in non-farm credit off-take which has defied many doomsday predictions. To be precise, the post-pandemic behaviour of the retail credit portfolio has improved both in terms of growth and risk parameters. Data indicates a significant improvement in asset quality parameters coupled with broad-based growth across retail loan segments. As J. Swaminathan, Deputy Governor, Reserve Bank of India, said in a January 10 speech, “Undoubtedly, these are good times for the financial services industry, characterised by robust parameters of performance and soundness. This enviable position is owed, in no small measure, to the hard work and unwavering dedication of the compliance, risk management, and internal audit functions”.