: : : Mideast Portfolio Management Ltd - NRI Investment Consultancy : : :

Reserve Bank of India (RBI) declared that the fundamentals of Indian economy continue to be strong. The Indian banking system remains sound and is well regulated.

Indian banks do not have any direct exposure to sub-prime mortgages, but banks' overseas branches have some exposure to distressed instruments.

However, exposure to distressed instruments is small relative to the overall business size.

India's forex and money markets too are functioning in an orderly manner and thus there is no reason for any anxiety or uncertainty about the banks. India is suffering indirect, knock-on effect of the global financial situation, but RBI has injected liquidity in to the system, and is closely monitoring the situation.