Rajan concerned about NPAs, expects situation to improve

Tags: News
Expressing concern over rising NPAs, Reserve Bank Governor Raghuram Rajan today said the situation would improve with stabilisation of the economy.

"Rising NPAs in PSU banks are a concern...Here in India, especially in PSBs, not in private banks, we have growing NPAs. Hopefully, it will stabilise. It has become somewhat an issue," he said at an event here.

Non-performing assets (NPAs) or bad loans of PSU banks rose by 28.5 per cent from Rs 1.83 lakh crore in March 2013 to Rs 2.36 lakh crore in September 2013.

Referring to the economy, Rajan said though India is going through a period of turmoil, growth appears to be stabilising.

Having touched a decade-low of 4.5 per cent in 2012-13, India's economic growth rate is projected to improve to 4.9 per cent in the current financial year ending March 31.

The issue of rising NPAs was also flagged by ICICI Bank Managing Director and Chief Executive Officer Chanda Kochhar, who attributed it to external factors.

She said the banking sector had successfully overcome the 2008 crisis and will improve further with the revival in the economy.

"The economy has bottomed out...There is a need to bring back investment to revive the economy," she said, adding that there was a need to improve the decision-making environment.

EDITORIAL OF THE DAY

  • Reservations, along with economic subsidies, must go to get India moving

    A young man, in his early twenties, starts an agitation demanding reservation for the community he represents.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Urs Schoettli

The China story isn’t over yet

China’s financial markets are currently in the eye of a ...

Anuja Sharma

Love yourself to love others

“There are two basic motivating forces: fear and love. When ...

Gautam Gupta

It's a 'blog eat blog' world out there

Let me tell you, fashion journalism has truly taken the ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture