This week we bring to you latest topic- Risk aversion in banking industry. The global financial crisis of 2008 and its aftermath has fostered risk aversion in banking industry worldwide.
Recently RBI said that extreme risk aversion can be self-defeating and certainly not desirable while Indian top bankers shrugged off tag of being risk averse and said they were practising prudent banking and recent slowdown in credit growth is due to lack of demand.
In today’s brief we have analysed RBI’s concern and why it is pushing banks to raise capital. Also we have assessed bank’s stand and how they are responding to current pandemic.