STOCK MARKET BSE NSE

RBI closely watching business models of some banks: Shaktikanta Das

Banks have the privilege of raising deposits from the public, which also puts the onus on them to conduct their business in a very responsible manner, he said.

Published: 17th November 2021 03:30 AM  |   Last Updated: 17th November 2021 09:45 AM   |  A+A-

RBI governor Shaktikanta Das

RBI governor Shaktikanta Das (File photo | PTI)

By Express News Service

NEW DELHI:  Reserve Bank of India Governor Shaktikanta Das on Tuesday said the RBI was taking a closer look at the business models of some banks, which are ‘serving only the interest of their investors’.

“At the RBI, we have started taking a closer look on the business models and strategies of banks. Certain banks had followed the high risk and high return business strategy, with a skewed priority for serving only the interest of their investors. The active role of the Board, especially in challenging the proposals of the management, thus becomes critical,” Das said at an event hosted by the State Bank of India, without taking any names. He said some banks were doing more for shareholders than for their depositors.

“Banks have the privilege of raising deposits from the public, which also puts the onus on them to conduct their business in a very responsible manner. The Board of Directors carry the responsibility of being guardians of the trust that depositors have reposed in a bank.”

“A bank’s responsibility towards depositors should, therefore, be weighed against its responsibility towards shareholders of the bank,” Das said, adding (Some) managements and boards have become too cosy, which is not a good situation.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp