Mangaluru head-quartered Karnataka Bank on Wednesday said it is well capitalised, fundamentally strong bank and depositors need not worry about safety of their money.
"We have been consistently maintaining CRAR above the minimum prescribed by the RBI as well as the bank's internal policy. As per the audited balance sheet as on 31 March 2019, Capital to Risk Weighted Assets Ratio (CRAR) of Karnataka Bank stood at 13.17 per cent which is well above the minimum regulatory prescription," Karnataka Bank Managing Director and CEO Mahabaleshwara M S said in a statement.
Allaying fears of depositors, he further said the bank is in existence for over 96 years which is built on the trust of its 11 million satisfied customers across the country, is well capitalized, professionally managed and a fundamentally strong bank.
Mahabaleshwara appealed customers not to be carried away by any misleading and absurd reports on the banks on the television or social media.
"Across the globe, the health of a bank is measured by referring to Capital to Risk Weighted Assets Ratio (CRAR) and not by referring to the so called M-Cap (market capital) to deposit ratio," he said.
Earlier last week, the Chief Economic Adviser Krishnamurthy Subramanian had also clarified that globally also the M-cap ratio is not the right metric to measure banks' health and financial position.
Besides, the Reserve Bank of India (RBI) as well as SBI chief Rajnish Kumar and other banking experts have categorically endorsed the views and asserted that banks in India are well capitalized and are safe and healthy.
Karnataka Bank was the third private sector lender on Wednesday that came up with statements on its financial position. Earlier in the day, RBL Bank and Karur Vysya Bank (KVB) had also issued statements, urging depositors not to fall prey to unfounded rumours in the aftermath of the Yes Bank crisis that has shaken customers confidence in the banking system.