Mumbai, April 8 The Reserve Bank found no governance or conduct-related issues during its supervisory inspection of HDFC Bank, Governor Sanjay Malhotra said on Wednesday.
Responding to a question at the post-monetary policy press conference on the sudden resignation of HDFC Bank Chairman Atanu Chakraborty and the subsequent fall in its share price, Malhotra said the RBI had also reviewed the minutes of the lender's meetings, and found nothing of material concern.
He said the RBI had also stated in its press release on March 19 that there were no material concerns regarding the bank's conduct or governance.
"HDFC Bank is a Domestic Systemically Important Bank (D-SIB) with sound financials, a professionally run board, and a competent management team. Based on our periodic assessments, there are no material concerns regarding its conduct or governance," the RBI said in its press release.
Chakraborty had resigned on March 18.
Malhotra also asserted that India's banking system is "very resilient, safe, and strong".
He said there are no systemic risks concerning the profitability and health of banks in the context of the West Asia conflict.
In response to another question, the Governor indicated that the low interest rate regime may continue for some time.
He also said that the measures recently taken by the RBI to curb the volatility of the rupee will not remain permanent.
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