Exclusive | KV Kamath doesn't foresee a US-like bank crisis in India

Veteran banker and chairman of NaBFID KV Kamath said he is proud of the Indian banking system, adding that he is sure that a First Republic Bank-like crisis won't happen in India.

"I can be proud of banking regulations and risk management practices in India. This sort of a thing can never happen in India," Kamath said.

Speaking to CNBC-TV18, Kamath added that the US banking crisis indicates the flaws in the risk management practices of regulators and banks.

"The US banking crisis indicates vast holes in the risk management practises by both regulators and the banks themselves. When First Republic Bank crisis happened, I went into the balancesheet of that bank and what struck me was the P&L had nice profit, NPAs were in basis points, but balancesheet item number 2 which was held to maturity instruments - the value is shown as almost 100 and within brackets the current valuation was 84, so I said am I reading right? In previous year it was 97 or something like that, so what has happened? Then it struck me that this where the hole is and it is not accounted for, it is just a line item. I am sure there are lessons which have been learnt," Kamath said.