RBI governor highlights resilience of domestic financial system and healthy balance sheets of banks

Shaktikanta Das, the governor of Reserve Bank of India held meetings with the MD & CEOs of Public Sector Banks and select Private Sector Banks on yesterday as part of Reserve Banks continuous interaction with the Senior Management of its Regulated/Supervised Entities. The Governor in his remarks complimented the banks on their improved financial performance and that of the whole banking sector. While noting the resilience of the domestic financial system with healthy balance sheets of banks, he observed that there is no scope for any complacency and banks should continue to maintain their vigil around build-up of risks, if any. The Governor highlighted the issues relating to Business Model viability; outlier growth in personal loans; adherence to co-lending guidelines; Bank exposure to NBFC sector; Liquidity Risk Management; IT and Cyber security preparedness, operational resilience, digital frauds; and strengthening of the internal rating framework. He stressed that customer grievance redress mechanism and protection of customers interests are of paramount importance for the safety and stability of the financial system and that of individual financial institutions.

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