shaktikanta das : dimensions of india ’ s external sector resilience speech by mr shaktikanta das, governor of the reserve bank of india, at the bloomberg india economic forum 2019, mumbai, 19 september 2019. * * * the international environment is clouded with very challenging conditions. global growth is slowing down and central banks across the world are bracing up to counter it by easing monetary policy ; but there is no recession as yet. trade wars have pushed world trade into contraction and threaten to morph into tech and currency wars, with no evidence of any significant gains accruing to anyone. meanwhile, global commodity prices have weakened, with collateral benefits to net commodity importers and terms of trade losses for commodity exporters. the developments emanating from drone strikes on saudi oil facilities are, however, still playing out. sporadic flights to safety are driving capital flows out of emerging markets into advanced economy assets ; but the universe of negative yielding bonds is growing disconcertingly large, posing a potential threat to financial stability. strengths and weaknesses 2. in this hostile environment, india ’ s external sector has exhibited resilience and viability. the current account deficit has averaged 1. 4 per cent of gdp over the last 5 years and remains comfortably financed in spite of global spillovers imparting risk - on - risk - off volatility to portfolio flows. the level of foreign exchange reserves was at us $ 429 billion on september 13, 2019, sufficient to cover close to 10 months of imports or 21 months of debt of residual maturity up to 1 year. the indian economy remains a preferred habitat for foreign direct investment ( fdi ) and is among the top 10 destinations for greenfield projects ( source : fdi report, financial times, 2018 ). net foreign direct investment at us $ 18. 3 billion in april - july 2019 was higher than us $ 11. 4 billion in the corresponding period of 2018 – 19. 3. significant progress has been made in external debt management since the external payment difficulties encountered in 1990 which triggered wide - ranging structural adjustments and reforms. the level of external debt at 19. 7 per cent of gdp and the debt service ratio ( principal repayments and interest payments as a ratio of current earnings ) at 6. 4 per cent of gdp are among the lowest in emerging market peers. this places india among the least externally indebted countries of the world, by the world bank ’ s classification. in terms of a broader measure of external lia

s s mundra : banker - borrower interplay – synergies & challenges inaugural address by mr s s mundra, deputy governor of the reserve bank of india, at the “ bankers - borrowers - business meet ”, organized by the associated chambers of commerce and industry of india ( assocham ), new delhi, 23 march 2015. * * * assistance provided by shri r. kesavan is gratefully acknowledged. 1. shri a. c. mahajan, chairman, bcsbi ; shri m. narendra, chairman, assocham national council for banking & finance ; shri ashvin parekh, md apas llp ; other dignitaries on the dais ; colleagues from the banking fraternity ; members of assocham ; representatives of the print and electronic media ; ladies and gentlemen! let me begin by complimenting assocham for flagging an issue that is so relevant and contemporaneous for the banking industry. banks face immense challenges in the area of management of loans and advances in view of the mounting non - performing assets. these challenges exist in spite of the normal rigors that are specified by the regulator and banks ’ own head and controlling offices. an increasing number of enabling statutes and enactments coupled with fair practice lending codes make the job of a lender extremely challenging and open to scrutiny. it is against this backdrop that the bankers - borrowers “ love - hate ” relationships need to be analysed. it seems to be an imaginative idea on part of assocham to invite the banking supervisor to inaugurate the session in a bid to arbitrate between the banker and borrower and invite the wrath of both! on a more serious note, a determining aspect of the banker - borrower relationship is built on trust and understanding. it is also important that these relationships neither get too cosy nor do they get too strained as either would have deleterious consequences for the sector and the larger economy. the banking regulations in a way set the ground rules for bank - borrowers relationship, while the supervisory process ensures that this relationship remains healthy. based on my own practical experience in the field - first as a commercial banker and now as the banking supervisor, i intend to highlight some of the behavioral practices that rbi expects from the bankers and the borrowers. i would also emphasize some regulatory / supervisory concerns that currently exist and could arise from unhealthy relationships between the two. banker - borrower relationship : built