Governor Sanjay Malhotra said on Wednesday that during the supervisory inspection of HDFC Bank, the Reserve Bank did not find any problems related to governance or functioning. Responding to a question related to the sudden resignation of HDFC Bank Chairman Atanu Chakraborty and the subsequent fall in share prices in the post-monetary policy press conference, Malhotra said that the RBI had also seen the minutes of the bank’s meetings, and the RBI did not find any major matter of concern in them. He said that RBI had also said in its press release issued on March 19 that there is no major matter of concern on record regarding the functioning or governance of the bank.
banking system strong
RBI said in its press release that HDFC Bank is a Domestic Systemically Important Bank (D-SIB) with strong financials, a professionally run board, and a capable management team. Based on our periodic assessments, there are no material concerns on record regarding the functioning or governance of the Bank. Chakraborty had resigned on March 18. Malhotra also stressed that India’s banking system is “very resilient, safe and strong”. He said that amid the ongoing conflict in West Asia, there is no systemic risk to the profits and health of banks. Responding to another question, the Governor indicated that the period of low interest rates may continue for a long time. He also said that the recent steps taken by RBI to curb rupee fluctuations will not remain in force forever.
HDFC Bank shares rise
A good rise is being seen in the shares of HDFC Bank. The bank’s shares rose by 5.54 percent during the trading session to Rs 814.85, which is the high level of the day. If we look at the data, the bank’s shares opened at Rs 804 and a day earlier it had opened at Rs 772.05. However, at 1:50 pm the company’s shares were trading at Rs 811.40 with a rise of 5.10 per cent. Earlier on April 2, the company’s shares had reached a 52-week low of Rs 726.75. After that, after the resignation of HDFC Bank Chairman Atanu Chakraborty, there was a big fall in the shares of the bank.