BFSI - Navigating Growth and Risk’: CareEdge Ratings hosted “Conversations”, its annual event

 Regulated entities need to assess the reliability, security and regulatory compliance of the third parties to ensure that they meet the required standards: Shri M Rajeshwar Rao, Deputy Governor, Reserve Bank of India (RBI) at CareEdge Ratings event

- Calls for more diversification in third-party and digital outsourcing fintech ecosystem in BFSI sector

- Urges all the regulated entities to treat the customer complaint with due gravitas and use it as a feedback mechanism

Mumbai, 22nd July 2024: Addressing the CareEdge Ratings “Conversations” conference in Mumbai, Shri M Rajeshwar Rao, Deputy Governor, Reserve Bank of India (RBI) called for the regulated entities to assess the reliability, security and regulatory compliance of the third parties to ensure that they meet the required standards.

In his Keynote address at the CareEdge Conference, Shri Rao highlighted that considering that the third-party dependencies and digital outsourcing have become integral to the operations of the financial services entities, the need is to enhance efficiency to reduce costs and improve customer experience. However, the third-party dependencies can also pose certain risks and challenges. 

He called for the third-party fintech and digital outsourcing entities to ensure that robust cyber security measures are deployed by the service providers to safeguard against any cyber-attack threats. He also stressed on the need of vendor diversification, in order to avoid dependency risks and offer more flexibility for adapting changing market conditions or technological advancements. 

He highlighted on the need for fostering growth and ensuring consumer protection, in order to sustain this transformation and an enduring commitment to safeguarding financial stability. He mentioned that there is a need for huge set of financial resources, people resources, technological resources, and skill sets, to enable a robust and sustainable growth. He also spoke on improvement in response time to customer queries and complaints. He urged all the regulated entities to treat the customer complaint with due gravitas and use it as a feedback mechanism.

Shri. Mehul Pandya, MD & Group CEO of CareEdge Ratings said “Business growth should not come at the expense of taking on unacceptable business risks. Indeed, providing financial stability to the system is a prerequisite to sustainable growth that requires attention at the level of individual institution and a clear perspective on systemic risks which could lead to a better understanding of the web of connectedness between the players in the financial landscape.”

“The Indian banking sector is in an overall good health as reflected by the sustained improvement in asset quality, profitability and capital buffers. At the same time, a notable trend is the rising share of the personal and the services sectors in the banking credit, which is a significant transition from the infra heavy exposures to granular and diversified book over the years. The NBFC sector also continues to improve, with its cumulative growth expected to reach the pre-pandemic level soon”, added Mehul Pandya.

CareEdge Ratings successfully hosted “Conversations”, its annual event on the topic ‘BFSI - Navigating Growth and Risk’.  The event featured distinguished thought leaders and industry experts from Banking & Financial Services Industry. Shri M Rajeshwar Rao, Deputy Governor, Reserve Bank of India (RBI) graced the event as the Chief Guest, presented the keynote speech. A panel discussion on the topic ‘Is banking system equipped to finance India’s growth?’ featuring Shri Ashwini Kumar Tewari , MD, State Bank of India, Shri Rajneesh Karnatak Managing Director & CEO, Bank of India, Shri Samuel Joseph, Deputy Managing Director, National Bank for Financing Infrastructure & Development (NaBFID) & Shri Kaushik Shaparia CEO Emerging Asia & India, Deutsche Bank as the panellist. While, a panel on the topic 'Navigating growth admist regulatory changes' was discussed by Shri Rajiv Sabharwal Managing Director & CEO, Tata Capital Ltd, Shri Virender Pankaj CEO, Aseem Infrastructure Finance Limited, Shri Jairam Sridharan Managing Director, Piramal Capital & Housing Finance Ltd (Piramal Finance) and Shri Niren Shah Managing Director & Head, Norwest India.

 

About CareEdge:

CareEdge is a knowledge-based analytical group offering services in Credit Ratings, Analytics, Consulting and Sustainability. Established in 1993, the parent company CARE Ratings Ltd (CareEdge Ratings) is India’s second-largest rating agency, with a credible track record of rating companies across diverse sectors and holding leadership positions in high-growth sectors such as BFSI and Infra. The wholly[1]owned subsidiaries of CareEdge Ratings are (I) CARE Analytics & Advisory Private Ltd previously known as CARE Risk Solutions Pvt Ltd, (II) CARE ESG Ratings Ltd, previously known as CARE Advisory Research and Training Ltd and (III) CareEdge Global IFSC Ltd. CareEdge Ratings’ other international subsidiary entities include CARE Ratings (Africa) Private Ltd in Mauritius, CARE Ratings South Africa (Pty) Ltd, and CARE Ratings Nepal Ltd.