Winning Bizness Desk

Mumbai. Reserve Bank of India has come to the notice that some banks have tried to hide the actual position of their stressed assets. Along with this, governance gap has also been observed in some lenders. Reserve Bank Governor Shaktikanta Das has said that it is a matter of concern despite the guidelines. He said, "Even after the guidelines of RBI, there have been flaws in the corporate governance of some banks. These flaws in corporate governance can cause volatility in the banking sector." Along with this, he warned the banks and asked them to be careful. However, he did not name any bank during this period.

What else did the Governor say?

Governor Shaktikanta Das said that we have to keep in mind that when things are going well, the risks are often ignored. Therefore, the Board of Directors of the banks and their senior management should maintain a vigil on external risks and internal deficiencies. In addition to this, he also said that the Indian banking sector stands strong and stable. Today our banking sector is strong and stable with 16.1% Capital-to-Risk Weighted Assets Ratio (CRAR), 4.41% Non Performing Assets (NPA), 1.16% Net NPA and with 73.20% Provision Coverage Ratio.

Imp points will be discussed in board meeting

The RBI governor said all these things while addressing the conference of directors of private and government banks. During this, he said that a strong governance structure is the first and foremost thing for sustainable finance performance along with the stability of banks. Along with this, Shaktikanta Das emphasized on the need to discuss 7 important topics. These topics are asked to be discussed during the board meeting, which includes business strategy, financial reports and its accuracy, risk, compliance, customer protection, financial inclusion and human resources.