India finance minister asks state run banks to assess risks

NEW DELHI (Reuters) – India finance minister has asked state-run banks to assess various financial health parameters amid turbulence across the global banking sector.

After a meeting with chiefs of state-run banks in New Delhi on Saturday, the finance ministry said in a statement that lenders have been asked to identify stress points, including “concentration risks and adverse exposures”.

Ahead of the meeting, the government had sought details of the bond portfolios of these banks, Reuters reported.

Banks should safeguard themselves from any potential financial shock, the finance minister told bankers according to the statement.

“All the major financial parameters indicate stable and resilient public sector banks,” the statement added.

Indian lenders are capable of enduring any potential contagion effects emanating from the U.S. banking turmoil, S&P Global Ratings said this week.

“Strong funding profiles, a high savings rate, and government support are among the factors that bolster the financial institutions we rate,” the rating agency said.

(Reporting by Nikunj Ohri; writing by Ira Dugal; editing by Jason Neely)