India’s Economy Surges with 8.4% Q3 Growth, Banking Sector Strengthens Amid Liquidity Challenges

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Expert Insights into Risk Management by Dr.Rao, Ex-Banker Turned Educator

Dr. Rao, formerly a professional banker, has transformed his career into imparting knowledge about risk management at the famous IIRM. His background stems from holding important posts at institutions like Bank of Baroda, NIBM, and NIBSCOM. Equipped with a PhD in commerce, MBA in Finance and LLB, he is a notable figure in the financial industry.

Rao’s Contributions to the Field

Over the years, Dr. Rao has developed a rich portfolio of contributions to financial literature. He has authored a prominent book that narrates the transformation public-sector banks have undergone in India according to our source. Additionally, he is known for crafting insightful articles for Another interesting aspect of his work is his YouTube channel, where he shares his banking knowledge with interested parties. This channel has proven to be an invaluable resource for individuals wanting to learn more about the banking sector.

Unraveling India’s Financial Performance in FY24: an Overview

According to our sources, the report discusses the performance of India’s economic and banking sectors in FY24. Emphasis is placed on the 8.4 percent GDP growth in Q3 and the positive surge in banking metrics such as the CRAR and GNPA ratios. However, it’s not all sunshine and rainbows as there are existing challenges pressing on liquidity and cost of funds. Major financial institutions like ICICI, SBI, and Yes Bank have witnessed ratings downgrades from Goldman Sachs.

RBI’s Monetary Policies and the Shift in Savings

The RBI has formulated monetary policies with the primary goal of managing inflation and liquidity. This has made it necessary for banks to maintain a high volume of liquid assets. While this is happening, there seems to be a strategic shift in savings towards various modes of investments including physical assets, health insurance and a growing preference for digital financial services. Changing customer demographics further indicate a favorably inclination towards millennials and Gen Z.

How is the Banking Sector Adapting?

As the financial landscape evolves, it’s crucial for the banking sector to navigate through these changes efficiently. To ensure this, strategic liquidity management and risk mitigation strategies have been implemented. The adoption of frameworks like the Structural Liquidity Framework (SLF) and the oversight of the Asset Liability Management Committee (ALCO) play an instrumental role in this process.

Ethan Garcia

Ethan Garcia, a seasoned financial wordsmith, intricately weaves the complex world of finance into accessible narratives. With a keen eye for detail and a passion for demystifying financial intricacies, Garcia's writings on ReaderWall offer invaluable insights, making the intricate dance of numbers and markets comprehensible to readers of all backgrounds.