Shaktikanta Das, governor of the Reserve Bank of India, asserted that Indian banks are robust and will keep adequate capital even under dire circumstances. The Global Conference on Financial Resilience was being addressed by Das.

Stress tests, according to Das, have demonstrated that Indian banks will be able to keep their capital adequacy levels above the minimum requirements even in times of extreme difficulty.

“The Indian banking system has remained resilient and has not been impacted adversely by the recent sparks of financial instability seen in some advanced economies,” said the RBI Governor.

He continued by saying that the central bank is committed to making the Indian financial system future-proof and to supporting its sustainable growth. Das, on the other hand, cautioned stakeholders to exercise caution because financial sector surprises can occur at any time.

Das' comments come weeks after the Silicon Valley Bank and Signature Bank scandal, which caused problems in the US and European financial industries.

He added that banks should not pursue an ambitious expansion plan but rather be organizationally robust. The governor also advised banks and other financial institutions to continue working with outside auditors.

Banks and their management, according to Shaktikanta Das, must constantly examine financial risks and create buffers above the minimal regulatory requirement.

Governor Das stated that the RBI has implemented a number of frameworks and also uses macroprudential policies to evaluate the accumulation of risks. He claimed that the RBI has begun extensively examining the business strategies of banks.

Also Read - Adani Cement repays $200 million in Holcim debt, paring a $1 billion loan.