No scope for complacency, RBI governor tells banks

RESERVE BANK OF India (RBI) governor Shaktikanta Das on Wednesday expressed concerns over outlier growth' in personal loans of banks.

- SACHIN KUMAR

In a meeting with MD and CEOs of public sector banks and select private lenders, he told them to remain vigilant of build-up of risks in the system as there is no scope: for any complacency.

During the meeting, attended by deputy governors M Rajeshwar Rao and Swaminathan J, the governor highlighted the issue of banks' exposure to NBFCs (non-banking finance companies) and adherence to co-lending guidelines, besides complimenting them on improved financial performance and that of the whole banking sector. The meeting was also attended by executive directors in charge of regulation and supervision.

"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 remain vigilant of build-up of risks, if any," the RBI said in a statement.