Reserve Bank of India (RBI) Governor Shaktikanta Das this week asked the directors of public-sector banks (PSBs) to further strengthen their governance and assurance functions, such as risk management and internal audits, so that they are able to identify and mitigate risks early. He also emphasised the need for PSBs to ensure continued financial and operational resilience. Notwithstanding this appeal for further improvement, the RBI would be pleased with the banking sector’s performance during a difficult year. The FY23 results of 37 listed commercial banks, including PSBs, indicate they have in aggregate managed the remarkable feat of improving the quality of their balance sheets, while expanding credit disbursement and generating much higher profits in a financial year that saw sharp interest rate hikes.