Several procedural & suasive measures, and supervisory review processes over select banks were also undertaken to sensitise them in this regard.
In particular, the RBI’s concerns about credit quality in the expansion phase of credit, the recourse to non-deposit resources to fund their assets, the uncomfortable loan-to-value ratios and excessive reliance on wholesale deposits were repeatedly expressed, and this has been followed up with interactions with select banks, as needed. As a result, overall credit growth as also advances to sensitive sectors have since moderated.