RBI governor Das asks banks to strengthen governance, risk management

RBI governor Shaktikanta Das on Wednesday asked banks to further strengthen the governance standards, risk management practices and compliance culture. As part of the Reserve Bank's continuous engagement with the senior management of its regulated entities, Das held meetings with the managing directors (MDs) and chief executive officers (CEOs) of public sector banks and select private banks. The governor in his opening remarks noted the continued improvement in banks' asset quality, loan provisioning, capital adequacy, and profitability, the RBI said in a statement. "While acknowledging the higher resilience and strength of the banking sector, he highlighted the importance of further strengthening the governance standards, risk management practices and compliance culture in banks," Das said. Persisting gap between credit and deposit growth; liquidity risk management and ALM-related issues; and trends in unsecured retail lending were among the issues which were discussed at length.