MUMBAI: Reserve Bank of India governor Shaktikanta Das has reiterated that the Indian banking sector remains sound and stable. Replying to reporters in the post policy interaction with the media Das also defended the central bank’s action in the Punjab & Maharashtra Co-operative Bank (PMC) case.
“RBI acted very swiftly. We have appointed the administrator, reviewed the liquidity position, complaint filed in EOW. One incident should not be used to generalise about health of co-operative banks,” Das said in reply to questions.
The RBI is looking at all aspects on PMC case and the matter is now under investigation, Das said. Mumbai based PMC is under RBI directions after the bank management hid loans of Rs 6226 crore to the real estate company HDIL. These loans now are likely to be classified as NPAs as HDIL is in the bankruptcy courts.
Meanwhile, on Friday, HDIL promoters, Rakesh and Sarang Wadhawan who were arrested a day before were brought to the court. The Mumbai police is seeking custodial remand of the father-son duo.
Das said there is no reason for depositors in other banks to panic unnecessarily panic. “Every such incident is an experience and based on this we will take a fresh regulatory view…every case is unique, you cannot generalise and say one method which was used has to be repeated. Based on the facts of this case we have acted in the manner we have,” Das said.