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

  • Government must wake up to the woes of electricity generators

    India is not staring at a power crisis yet, but an estimated 46,000 mw of power capacities are at risk today.

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

Arun Nigavekar

Moocs will not replace traditional education

I am revisiting the topic of massive open online course ...

Zehra Naqvi

Minimalism: declutter your life

When you imagine an ideal place to live, you think ...

Gautam Gupta

Our fashion schools need to notch it up

“Creativity is the key to success and primary education is ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture