Hyderabad, March 17:
The Indian banking system is sound under “strict and mature regulation” by the Reserve Bank of India (RBI), Sanjiv Bajaj, Chairman, CII and CMD, Bajaj Finserv Ltd.
While responding to a question in a panel discussion at the CII-SR Annual Regional Meeting in Hyderabad on Friday, Bajaj said there should be a difference between the “need and greed” of banks. The crisis would follow if there was a significant mismatch between liabilities and assets, Bajaj said, adding: “Banks should be creatures of risk first, but not creatures of return.”
It should be noted that the bank as an institution will provide strong support to the real economy and the strength of a bank is vital, he said.
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While some startups/fintechs were doing an “excellent” job, the valuations were sometimes very high, he said. “Fortunately, we have a mature, strict and very secure regulator at RBI,” Bajaj said.
Later, while answering questions from reporters, he said there was no shortage of credit flow to the industry. On key policy rates, he said: “We ask the RBI to pause.” While there was a time when global cooperation and collaboration among regulators was needed, now is the time to craft country-specific policies, she added.
On the impact of the US banking crisis on the Indian industry or any specific sector, he said it is up to the government to look into the matter.
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