Mumbai: The second wave of pandemic takes “Corsorus Victims” in India, but the economic activity of the dent has begun to recover from the end of May, Governor of Reserve Bank Shaktikanta Das said on Thursday.
In the first, the DAS marks increasing violations of data and cyber attacks as a risk faced by the economy, along with others such as tightening global commodity prices.
“Recovery that has begun in the second half of 2020-21 is a dent in April-May 2021, but with a wave of infection that subsides as soon as possible, economic activities have begun to search at the end of May and early June,” Das wrote in his warrant for financial stability reports Two years prepared by the RBI.
The report said the Bank’s gross performance assets had been stable at 7.5 percent in March 2021 – the same level as six months ago – but it is expected to reach 9.8 percent on March 202, according to the baseline.
scenario.
DAS said the balance of balance sheets and the performance of financial institutions in India has been far less than projected before, but it quickly to add that clearer images will appear as an effect of regulatory reliefs fully working.
He also said that the capital buffer and liquidity in financial institutions were “strong enough” to hold back future shocks.
The financial system is on the front foot to help recover, but its priority is maintaining and preserving financial stability, he said.
The domestic financial market was also driven by signs of strengthening pandemic reduction, the growing rate and the breadth of vaccination drive and new economic hopes that crossed the lost land when opened, he said.
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While the recovery is underway, the new risk has appeared on the horizon and this includes a state of a newly born and improvement increase, vulnerable due to future pandemic shocks and waves; international commodity prices and inflationary pressures; global abundant amid high uncertainty ; and increased incidence of data violations and cyber attacks, “he said.
The governor stressed that sustainable policy support accompanied by capital fortress and further liquidity buffer by financial entities remained vital to overcome risk.
The financial system can lead in creating conditions for the economy to recover and develop, he said, adding that a stronger capital position, good governance and efficiency in financial intermediation will become a touch stone of this business.