Governor of the Reserve Bank of India Sanjay Malhotra, today, said that Indian banks are far more mature compared to a decade ago. Addressing the State Bank of India Banking and Economics Conclave 2025 in Mumbai, the Governor noted that the State Bank of India has transformed from being in loss in 2018 to becoming a 100 billion dollar company today.
The RBI Governor highlighted a series of regulatory measures-including the Asset Quality Review (AQR) in 2015, the Prompt Corrective Action (PCA) Framework, consolidation of 27 public sector banks, massive recapitalisation, and the Insolvency and Bankruptcy Code (IBC)-which have fundamentally transformed India’s credit culture.
He also noted that, in parallel, major reforms were undertaken to strengthen monetary and macroeconomic stability. These included the adoption of a flexible inflation-targeting regime, deepening of forex markets, and the gradual liberalisation of the capital account.
The Governor added that these measures have encouraged greater discipline among borrowers and improved the quality of assets across the banking system. The RBI Governor further stated that the evolution of India’s financial system requires prudential rulebooks to evolve in a calibrated manner, as banks are now stronger, supervision is more alert, and market-based risk transfer mechanisms are more effective.
