No major governance concerns found in HDFC Bank: RBI Governor

MUMBAI: Sanjay Malhotra on Wednesday said that the Reserve Bank of India has not found any major governance issues in HDFC Bank, even after the bank’s chairman stepped down citing ethical disagreements.

Speaking after the monetary policy announcement, the RBI governor said that based on regular supervision, there are no material concerns about the bank’s governance.

“Existing banking laws are clear and effective, and there is currently no need for any changes,” he said.

“However, the central bank would review the situation if required,” Malhotra stated.

Malhotra also reassured that there are no broader concerns in the banking sector. “The system remains safe and stable, and such individual incidents do not affect the overall health of banks,” he explained.

“There are no systemic issues related to profitability or financial strength in HDFC Bank,” Malhotra mentioned.