Lauding the government and RBI for saving the day for India with conservative banking norms, ICICI Bank chairman KV Kamath has said any further reforms in the banking sector should wait as global banks are in 'disarray'.
"Indeed the conservatism of Indian banking system and regulatory framework has prevailed," Kamath said about the policymakers' conservative approach on banking sector reforms.
Asked if he was suggesting that the prevailing banking policies should not be altered, Kamath said: "At this point in time, we should not tinker with it."
About banking sector reforms, Kamath said: "We already have a well-run banking system and a well-run financial system. It has adequate levels of capital. I think at this point in time we shall keep it undisturbed."
"I think, universally the approach to banking, to financial markets is to basically be in the state of cautionary readiness where you maintain high levels of capitals and maintain very prudent policies."
On RBI deferring liberalisation of foreign banks, he said: "I think it is entirely appropriate that they have said they will review it at appropriate time. At this point of time for India to take a decision would not have been appropriate. There is no equilibrium in the global market (now).”
Even the NPA levels for Indian banks were at a comfortable level, when compared to their global peers and this could be attributed to a well-managed system being in place, he said.