Reserve Bank of India (RBI) Governor Shaktikanta Das, on Wednesday, asked MDs and CEOs of public sector banks and select private sector banks to continue to maintain vigil around build-up of risks, if any.
Das met the MD and CEOs as part of RBI's continuous interaction with the senior management of its regulated/supervised entities.
Das praised 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," a statement from RBI read.
Das 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.
The governor stressed the importance of customer grievance redress mechanism and protection of customers’ interests for the safety and stability of the financial system and that of individual financial institutions.
