Bad loans in banking sector a matter of concern: Subbarao
The Reserve Bank Thursday said the growing non-performing assets in the banking sector is a matter of concern and steps are being taken to bring it down as soon as possible.
Chennai: The Reserve Bank Thursday said the growing non-performing assets in the banking sector is a matter of concern and steps are being taken to bring it down as soon as possible.
"Together NPAs and restructured assets are increasing and are quite sizable. It is a matter of growing concern ... The Reserve Bank and government have taken all action necessary to ensure that NPAs come down as soon as possible," RBI Governor D Subbarao told reporters here.
Non-performing Assets (NPAs) of banks have been going up for the last two years due to slowdown in the economy.
The gross NPAs of some public sector banks, including State Bank of India and Punjab National Bank have crossed 4 percent of the total assets at the end of March, 2013.
Gross NPAs of PSU banks have risen from Rs 71,080 crore as on March 2011, to Rs 1.55 lakh crore as on December 2012.
Subbarao further said the Indian banks are well capitalised. "They would be able to withstand substantial shocks to the system," he added.
After meeting chiefs of PSU banks, Finance Minister P Chidambaram yesterday said they have been asked to focus on their top 30 non-performing accounts and take action for recovery against the wilful defaulters.
"They are keeping a close watch on top 30 NPA accounts in each bank and action will be taken to recover especially when there is a case of wilful default," he had said.