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.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • The current value of the rupee does not merit market intervention

    The rupee, losing 40 paise per month against the dollar since May, is expected to remain under pressure till the calendar runs out on December 31, bef

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Sustainable model for rural sanitation

Prime minister Narendra Modi has promised to build a toilet ...

Zehra Naqvi

How smells evoke strong memories

Remember that time when a passing fragrance transported you to ...

Dharmendra Khandal

Indian zoos need a fresh approach

Recently, when a man jumped in a tiger trench of ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture