Swaminathan urges banks to match growth with resilience
Reserve Bank of India (RBI) Deputy Governor Swaminathan J urged bank leaders to pair credit growth with stable deposits and technological resilience. Speaking at Indian Bank's leadership conference in Chennai, he stressed governance and customer trust.
Growth needs stronger foundations
Swaminathan said improvements in asset quality, capital adequacy and profitability give Indian banking a sound foundation for growth.
Sustainable expansion requires sound underwriting, appropriate risk pricing, assessment of repayment capacity and a stable, diversified deposit base.
He placed operational and technological resilience alongside credit and market risk.
Cybersecurity, data protection, business continuity and oversight of third-party providers require senior management engagement across business functions.
Governance must translate into clear accountability, effective internal controls and transparent decisions.
Responsible lending, fair customer treatment and effective grievance redressal underpin public confidence.
Competition reaches beyond banks
Digital payments, artificial intelligence and data analytics are changing service delivery and customer expectations, Swaminathan said.
Banks operate alongside fintech companies, technology platforms and other providers, while changing household savings preferences complicate deposit mobilisation.
Geopolitics, trade, investment and global financial conditions also affect domestic activity.
Leaders need a broader strategic perspective and flexibility, while investing in people, systems and capabilities whose benefits extend beyond their tenure.
Targets are not enough
Swaminathan's message makes institutional preparedness a test of leadership alongside financial performance.
He said business results cannot fully capture readiness for the future.
His prescription combines informed challenge, independent judgement and opportunities for younger colleagues to lead.