Banks' asset quality fine, says panel

Banks' asset quality fine, says panel

C Rangarajan

He said presently the asset quality is well within limits and under norms set by the Reserve Bank of India. “As of now, the asset quality of the banks is well within the limits as prescribed by the Reserve Bank of India. But, the extent of the exposure to each industry is a matter that needs to be reviewed by the banks every year taking into account how that particular industry is behaving,” Rangarajan told reporters on the sidelines of an event organised here.

In the recent past, analysts have raised concerns over the exposure of banks to these sectors. In the aviation sector, country’s top airlines like Kingfisher Airlines and national carrier Air India, owe about US$10 billion to banks.

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