India economy growing well, banking sector stable: DFS Secretary Nagaraju
Synopsis
At the IBA's first-ever Risk Management Summit in Mumbai, Finance Ministry's DFS Secretary M. Nagaraju declared India's banking sector stable and growing — even as over 200 bankers gathered to confront a new generation of risks that are rapidly outpacing traditional oversight frameworks.
Key Takeaways
Nagaraju declared India's economy growing well and banking sector stable at the IBA Risk Management Summit on 7 May 2025 in Mumbai .
Nagaraju called for risk management to be treated as a strategic responsibility embedded across all banking functions.
IBA and SBI Chairman Challa Sreenivasulu Setty warned banks not to lose sight of core operational risks amid growing complexity.
Over 200 participants from public, private, foreign, and cooperative banks attended the inaugural summit.
Nagaraju released an essay book featuring the top 30 entries from over 650 submissions by banking professionals nationwide.
A survey report on risk management practices across the banking sector was also unveiled at the event.
M. Nagaraju, Secretary of the Department of Financial Services (DFS), Ministry of Finance, on Thursday, 7 May declared that India's economy is growing well and the banking sector remains stable despite ongoing global and domestic challenges. Nagaraju made these remarks at the Indian Banks' Association (IBA) inaugural Summit on Risk Management held in Mumbai.
DFS Secretary's Key Message on Risk Management
Addressing the gathering, Nagaraju emphasised that risk management in banks must be elevated from a compliance function to a strategic responsibility, embedded across all operations of the banking system. "Despite various challenges, the economy is growing well and the banking sector is stable and performing well. Risk management, which is an important function of banks, should be a strategic responsibility and should be embedded in all functions of banks," he said.
His remarks come at a time when Indian lenders are navigating a complex environment marked by geopolitical uncertainty, volatile global capital flows, and rapidly evolving cyber and technology risks. The call to mainstream risk frameworks across all banking functions — rather than confining them to dedicated departments — reflects a growing regulatory and strategic consensus.
IBA Leadership Weighs In
Challa Sreenivasulu Setty, Chairman of the Indian Banks' Association (IBA) and State Bank of India (SBI), noted that banking is fundamentally about managing intermediation risks. He cautioned that while emerging risks are growing in complexity, banks must not lose sight of core operational risks that remain the bedrock of financial stability.
Gopal Murli Bhagat, Deputy Chief Executive of the IBA, described the risk summit as more than an annual gathering. He called it a shared platform for insight and innovation aimed at reimagining risk management across the broader banking and financial sector.
Scale of Participation
The summit brought together over 200 participants, including senior officials from public sector, private, foreign, and cooperative banks, as well as representatives from All India Financial Institutions (AIFIs) and industry experts. The breadth of participation signals a sector-wide recognition that risk management can no longer be treated as a back-office function.
Essay Book and Survey Report Released
On the sidelines of the summit, Nagaraju released a commemorative essay book featuring the top 30 entries selected from over 650 submissions received nationwide from banking professionals. He also unveiled a survey report on risk management practices across the sector.
Nagaraju commended banking professionals for their contributions, saying their collective expertise would be pivotal in addressing future challenges in the financial sector. As risks evolve in scale and sophistication, the IBA's move to institutionalise this annual summit signals an intent to make risk governance a permanent boardroom priority.
Point of View
But the next stress test may arrive via cyber vulnerabilities or climate-linked credit risk — areas where the regulatory toolkit remains nascent. The IBA's decision to institutionalise this summit is a positive signal, but intent must now translate into enforceable, measurable standards.
NationPress
9 May 2026
Frequently Asked Questions
What did DFS Secretary M. Nagaraju say at the IBA Risk Management Summit?
Nagaraju said India's economy is growing well and the banking sector remains stable despite global and domestic challenges. He stressed that risk management must be treated as a strategic responsibility embedded across all functions of banks, not just a compliance exercise.
What is the IBA Risk Management Summit?
It is the Indian Banks' Association's inaugural annual summit focused on risk management practices across the banking and financial sector. The 2025 edition, held in Mumbai on 7 May, brought together over 200 participants from public, private, foreign, and cooperative banks as well as All India Financial Institutions.
Who is Challa Sreenivasulu Setty and what did he say at the summit?
Challa Sreenivasulu Setty is the Chairman of both the Indian Banks' Association and State Bank of India. He noted that banking is fundamentally about managing intermediation risks and cautioned that banks must not overlook core operational risks even as emerging risks grow in complexity.
What publications were released at the IBA Risk Management Summit?
DFS Secretary Nagaraju released a commemorative essay book featuring the top 30 entries from over 650 submissions by banking professionals nationwide, and also unveiled a survey report on risk management practices across the banking sector.
Why is risk management a priority for Indian banks right now?
Indian lenders are navigating geopolitical uncertainty, volatile global capital flows, and rapidly evolving cyber and technology risks. Embedding risk frameworks across all banking functions has become a key regulatory and strategic priority, as underscored by senior officials at the IBA summit.
