RBI: RBI guards against contagion risk from exuberant retail lending. 5 key takeaways
Banks and NBFCs should ensure that credit growth at the overall, sectoral, and sub-sectoral levels remain sustainable and all forms of exuberance are avoided; credit risk should also be priced properly. Lenders are relying on ALM mismatch to sustain margins through overreliance on short-term bulk deposits.
Source: indiatimes.com
