RBI wants to ensure current growth pickup sustains

HDFC CEO Keki Mistry says NBFCs will take a call on converting into banks only after they see in what shape do the final guidelines come. Excerpts from an interview:-

Do you think RBI has done enough to address the concerns over excess liquidity, inflation and growth?
At this moment, it is aimed at ensuring that the growth that we have seen over the past few months sustains, and picks up. So, RBI has done the absolutely right thing by keeping interest rates low and by maintaining the accommodative policy.

There is an interesting commentary on NBFCs, where RBI is talking of risk-based audits. How do you look at that?
Frankly, I did not hear the comments. It was expected after the policy paper that the regulatory environment would be a little different depending on the size of the NBFC: the smaller the NBFC, the lighter the regulations, while the bigger the NBFC, the stronger will be the regulation. I do not see it as a concern, to be honest. As for converting NBFCs into banks, that working paper is a draft; it is not mandated. It is not something that RBI has just adopted. After public comments, one will have to see in what shape do the final guidelines come. It remains to be seen whether there are any exemptions in terms of CRR, SLR, in the existing balance sheet. So I think all NBFCs will look at it at that point and take a call.