With banks witnessing an increase in non performing assets over the last two to three quarters, RBI governor Urjit Patel said that the central bank will deal with the issue with firmness and pragmatism.
“The NPA situation is an important issue for the RBI in India. We will deal with the situation with firmness but also with pragmatism so that the economy does not feel any lack of credit to support the growth in the economy,” Patel said.
“We must remember that the situation has not occurred overnight, and therefore will require skill and thoughtful endeavour to resolve,” Patel added.
He said, “RBI needs to work on resolution of NPAs. There are four stages: the identification, the recording and reporting of this particular subject has been done satisfactorily. But the resolution, which is the fourth leg, is something that we need to work more.”
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