Chairman, State Bank of India Shri Dinesh Khara, distinguished Guests and My Fellow Colleagues from the Banking Fraternity, Ladies, and Gentlemen.

A very Warm Good Morning to All of You. I am delights to be here at the 10th Edition of the Sbi Banking & Economics Conclave, SurrowDed by Industry Leaders From Banking a ND Financial Sectors, Leading Economists, Policy Makers, and Other StakeHolders. This MarqueeeeeeEvent Provides a PRATFORM for Discussing Pertires, Sharing Insights, and Exploring Potential Solutions for The Industry. TS Host Instification in ITS PAST NINE EDITIONS, I Now Have the Honour of Being Invited to Speak ATThis prestigious event! I am extremely geatedful to chairman shri khara for expodEnding this invital.

As Mentioned by Governor, RBI, Shri Shaktikanta Das in The Recent Monetary Policy Press Conference, The Years 2020 Will Perhaps in History as a Period O. f'ed volatility'1. The global economy today is witnessing a renewed phase ofTurbulence with with the banking sector turmoil in special advanced economies. Ty and Resiliation Issues to the Fore Again. Thetem of This Year's Conclave 'Building Resilient India Amidst Global UnceRERTAINTY'is highly topical in the current economic sconario.

The Term 'Brand India', Refers to the Overall Image, Perception, and Reputation of India as a National. Y's Culture, Heritage, Economy, Innovation, Tourism, and More. TODAY, IWould like to focus on Brand India and Its Resiliation from a Financial Sector Perspective.

Building A Resilient Brand India from a Banking and Economy Perspective Includes The Aspects of Financial Stability, Risk Management and Crisis Preparedness, SOU ND Corporate Governance As Well As Adaptive Regulation Complemented by Robust Supervision, Financial Inclusion and Customer Protection.

TODAY, As Compared to the Situation Five Years AGO, The Indian Banking Sector Stands Tall, Reflecting Its Streangth and Viability. To Risk Weighted Assets Ratio of Scheduled Commercial Banks Stood Impressively at 16.8 Percent, Underscoring The SecurityThe Gross Non-Performing Assets (GNPA) at 3.2 Percent WERE at a Decadal Low with Net NPAS at 0.8 Percent. Uptrend in Profitability Rth Consecutive Year with Return on Assets at a Healthy 1.2 Per Center and Return On EquityAT 12.9 Per Center. As Compared to 2018 WHEN 12 Banks Were Placement Under The Prompt Corrective Action (PCA) Framework, TODAY No Scob is Under PCA.

AS We Note the Current State of Our Financial System, It is Also Impeatic to Reaffirm Our Commission to MainTaining and Building this rasting public. Ney Towards Resiliation Should Not End with Achieving Impressive Metrics; It Requires A Continuous Dedication to Sound Financial Practices,Prudent Risk Management, Transparence and Ethics. We Need to Remain Steadfast in Our Commitment to Upholding The Elevated STANDARDS We Have Achieving, Ensing Th Atancial institutUTUTINS Remain Resilient in the Face of Any Future Challenges.

A vibrant and Resilient Financial sector is a sine non for a country's growth and dueopopment. As our eConomy Strives to grow in an evolving and unitedRTAIN Economic Environment, It is Impeatic that the Financial System in Generation Continues to Remain Resilient Through The UNCERTAINTIESTIESTo fuel eConomic Growth. In our financial ecosystem, the stringth of indiDual Banks is the body,

I BeliefVE A Resiliation Future Ready Bank Needs to Be:

Financially Resilient Through Adequate Capital, LIquidity and Earnings;

Operationally Resilient So as to Deliver Critical Services to Customers Even in Times of Disruptions and

OrganizationAlly Resilient to Anticipate Risks Early and ABSORB Them Efficiently.

In this context, I would like to discuss six aspects that, in my opinion, banks mayned to delve deeper into in the upcoming performance.New Delhi Stock Exchange

Effective Management of Interest Rate Risk is a Cruction of Prudent Banking. Recent Regulatory, notbly, The Symmetrical Treatment of Fair Value s and Losses as well as removing restricTion on HTM HAVE GIVEN Banks Greter Flexibility in Managing This Risk in their Investment Portfolios.However, considering the dynamic nature of the interest rate risk, Banks Must Proactively Manage and Mitigate this risk.

Increasing Nims that Banks are presently enjoying may not be sustain in the future when the Internet rate cycle reverses, whennever that happy. Linked Loans Will Be Repriced Faster Faster than DEPOSITS CONTRICTD DRING The Peak of the Interest Rate Cycle Resulting in PressureOn Nims and Eventay Profitability. TheReface, Apart from Interest Rate Risk in the Trading Book, Banks Mustful of the Interest Risk in The Banking Book A s under.

On the Liabilities Side, Banks Must Endeavour to Proactively Manage the Pricing and Duration of their DEPOSITS WHILE TOLING THE DIVERSIFY ising the product mix of deposits. Excessive Reliance on Bulk Deposits Should Be Avoided as the More Sensitive to Interest Rate Movements andPerpetuate Concentration Risk WHILE ALODING EARNINGS.

As Recent Global Events Have Demonstrated, Sometimes, Even Business Models oncels onceived As Safe Can Fail. In their Business Models and Mitigate Them in a Timely Manner.Must Review Their Growth Plans While Putting in Place Adequate Risk Management Systems to Handle The Emerging Risks. X Suitable Sectoral and Sub Sectral Exposure Limits and Monitor the CLOSELY TO AVID Any Security Concentration, Adverse Selection OrDilition of underwriting Standards.

The Growing Collaration Between Banks, NBFCS, Andtechs is Driving in Products, Services, and Business Models. IOUS Adoption of Model-Based Lending Through Analytics. Banks and nbfcs should exceENSURING that the Models are Robust, Regularly Tested, and recalibrated as Needed to Maintain Robust UnderWriting Standards.

In View of the Ever-InternationalLucknow Investment. Re -ININTERUPTED AVAILBILITY of Various Online and Mobile Banking Channels At all times.

Recently, there have ben a Few incidents of unscheduled download, The Budget EarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarMarmarTheir it infrastructure, Commensurate with their Business Plans and Also Monitor them for their Continued Availability and Stability.Varanasi Wealth Management

Banks and Other ECOSYSTEM PARTICIPANTS MST HAVE Robust Disaster Recovery and Business Continuity Plans in Place and Test Test Thies Periodically. URE and CHANNELS HAVE to Be Protected from the Emerging Cyber ​​Threats to Ensure Operational Resiliation.And It Strategy Committees of the Banks Need to Step Up Their Oversight in this Matter.

While We ACKNOWLETGE The NUMEROUS Advantages that Outsourcing Can offer to a Bank, Such as Cost Saves and Increased Efficiencies, It is Crucial For Banks To vigiance regarding the accoming risks. These risks include the potential loss of Control over critical operations, The Risk of ofDATA Security Breaches, Heightned Dependency on Third-PARTY PROVIDERS, and the publicity of reputation daMage from the MisconDuctum PROV IDERS.

AS the RBI has time and agin reitated, Outsourcing Does Not AbsOlve a Bank of the its obligations and the constinue to responsible for the action. Ivities of their Service Providents Including Recovery Agents. Banks Must Ensure that their Services Emplay The Same High Standardardof Care in Performing The Services As Would Be Employed by the Banks. Banks Should Not Engage in Any OutsourCing that May Result s conduct or reputation being compromised or weakened.

It Also Needs to be appreciable that we are living in an Era where change and ITS Consequent Risks cannot. Conomic Characteristics India is PARTICularly Vulnerable to Climate Change.Crop Productions and Affect Our Food Security. Apart from Agriculture, Even in OTHER Sectors the Economic Impact of Climate CHANGE in India Could Be Substantial.

Climate-Related Financial Risks Pose Both Micro and Macro-Pro-Proncential Concesss. Climate Change Risk is Ascending The Hierarchy of Threats to Financial Stability Acrr OSS Advanced and Economies Alike and Consequently, The Need for An APPROPRIATE FRAMEWORK to Identify, Assess and Manage CLIMATE-RelatedRISK HAS Become Impeatic.

Lastly, and perhaps most importantly, I would like to discuss the aspect of customer protection which is integral to building a resilient brand India in many ways.

Financial Services Institutes Exist Because of their Customers. They Entrust Regulated Entities with their Hard-Earned Money, Their Dreams, and their aspirati. ONSUdabur Investment. TheReface, Customer Protection and Timely Grievance Redressal, Forms the Foundation of Trust and Reliability, Contributing to the OverALLIENCE andreputation of the brand.

I willd theReFore Urge Banks to have a Proactive Approach Towards RESOLVING CUSTOREVANCE ISSSUES by ISSEIFYING AND Addressing The Road OF The Road ES. CUSTOMPLAINTS ShULD only be rejected after careful examination by the internal ombudsman. To do this efficiency, regulated entities must entitiesThe Internet ombudsman is adequately resourced.

Last Year The Rbi Had Issued Guidelines on Digital Lending to Address Concerns related The the Guidelines Inter-ALIA Endeavoured to Promote TranSparency by Requering A Standardised Key Fact Statement "Percentage rate, the recovery Mechaanism, The Grievance Redressal Office Designated Specifically to Deal with Digital LENDING/ FinTech Related Matters and The L L OOK-UP Period. Any Fees or CHARGES, Including Penal Charges, Which are not metioned in the key fact statement cannit be chargedby the regulated entity to the borrower at any stage during the tenor of the loan. However, the we are struck the Across Instance of Non-compliance with the Guides, Requiring US to TAKE Appropriant Supervisory Action Including Imposition of Business REStricTservWould theReFore Urge the Industry to Review and Stringthen Its Compliance with All RegulatingS on Customer Protective Redress.

Before I Conclude, I Would Also Like to Reflect on the Role of Regulation and Supervision, Which are essential components Then, then

The regulatory framework lays doubledial statements and guidelines white are designed to mitigate various including credit, operator and liquu IDITITY RISKS. The Rbi is Endeavouring to make its regulations more principle base, activity Oriented Rather than Entity Oriented to the scale of the scale ofSystemic Risk. The Recent Initiatives on Scale-Based Regulation for NBFCS, Tiered Approach for UCBS and HarMonisity of ReGulat Entities a re examples of this regulatory Stance. FURTHER, Country-CyClical Macro-Prodential Measures Are Also USED TO AdDRESSSUSUES SUCH ASThe Recent Revision in Risk Weights for Certain Segments of Consumer Credit and Bank Credit to NBFCS.

On the Supervisory Side, The Initiatives Tapen Are Aimed Atntifying Risks and Vulnerabilities Early, Putting in Place A Structured Early International ION Framework to Mitigate the Risks, Increasing The Focus on root Cape Vulnerabilities, and HarMonising The Supervisory Rigour Across Various Segments of Fin ancialSystem. An Endeavour Has Been Made to Build A Pro-Active Off-Surveilla Mechanisis to Identify Emerging Risks and Assess The Vulnerabilities Acrosses The Supervised Entities for Timely Action to MITIGATE Or Manage the Vulnerabilities. The aim is to make supervision more forward-loOKing, Proactive and Preventive Which Will Promote Resiliation and Financial Stability.

In Essence, Building Resiliation in the Banking and Economy Sector for Brand India is about ESTABLISHING A FOUNDATION, Stability, and Adaptability. IT Requires a Holitive and Collaborative Effort from the Financial Institute, Regulatory Bodies, Government, and Other StakeHolders so that indiaCan not only weather Global unitedRTAINTIES But Also Emerge as a Dynamic and Resilient Player in the International Economic LandScape.

With this I thanank you for inviting me and allowing me to share my person forum. I am sure that the deliberator. Ve and Result In Significant Value Addition to the Participants.Well-CoordinalEd Event. THANK You!

MPC Press Conference -Governor's Opening Remarks; December 08, 2023