Banking system sound, Indian eco fundamentals strong: RBI
Published on Sat, Oct 11, 2008 at 11:19 | Source : CNBC-TV18
Updated at Mon, Oct 13, 2008 at 11:57
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Banking system sound, Indian eco fundamentals strong: RBI
Reserve Bank of India Governor, D Subbarao, said that the fundamentals of Indian economy continue to be strong. RBI reassures on banks, says Indian banks do not have any direct exposure to subprime mortgages and that RBI is monitoring situation and is ready to take appropriate action, reports CNBC-TV18.
Reserve Bank of India (RBI) Governor, Duvvuri Subbarao, said that the fundamentals of Indian economy continue to be strong, while the Indian banking system remains sound and is well regulated, reports CNBC-TV18.
Subbarao said Indian banks do not have any direct exposure to sub-prime mortgages, but banks' overseas branches have some exposure to distressed instruments.
However, exposure to distressed instruments is small relative to the overall business size, the Governor added.
Subbarao said India's forex and money markets too are functioning in an orderly manner and thus there is no reason for any anxiety or uncertainty about the banks.
Subbarao said that India is suffering indirect, knock-on effect of the global financial situation, but RBI has injected liquidity in to the system, and is closely monitoring the situation.
RBI claims that it is ready to take appropriate, swift actions to improve the situation.
