RBI happy with banks cleaning up
Mumbai: RBI on Tuesday said it is quite satisfied with the progress made by banks in recognising their non-performing assets (NPA) over the last three quarters. According to the central bank, there is no significant elevation in the percentage of stressed assets and the pace of fresh non performing loans have also decelerated in the last few months.
“We are comfortable with the recognition process that the banks have taken. Some banks have taken more steps than we required them to take. So the culture of cleaning up seems to be well embedded as well as the culture of recovery on some of the loans,” said Dr Raghuram Rajan, governor, RBI.
However, for a large number of stressed projects, a key challenge according to Dr Rajan would be to figure out an ideal restructuring plan that would take care of the longer term health of the banking system as well as the respective projects.