RBI Governor highlights governance and reporting issues in Indian banks.
The Reserve Bank of India has identified instances of banks trying to conceal the real status of their stressed assets and governance gaps at certain lenders, according to its governor, Shaktikanta Das. Despite the guidelines on corporate governance, the RBI has come across gaps in governance at certain banks, which have the potential to cause some volatility in the sector. A robust governance structure is the most important requirement to ensure the stability of a bank and sustainable financial performance, Das added.