Mumbai, June 5 -- Competition among banks while mobilising deposits is "good" as long as it is transparent, Reserve Bank of India governor Sanjay Malhotra said on Friday in response to a question on recent deposit-linked marketing practices unearthed at a large private sector bank.

"Competition is healthy, competition is good. As long as it is transparent, as long as it is fair, competition is good," the governor said at the post-monetary policy press conference.

HDFC Bank's share price declined over 2% on 27 May after an Indian Express news report said the lender conducted an internal vigilance investigation into "differential interest" payments worth Rs.45 crore made to state-owned Maharashtra State Road Development Corporation.

The ...