PTI: Chennai, Fri ,Aug 02 2013, 01:11 hrs
Concerned over rising bad loans, the Reserve Bank of India (RBI) on Thursday said it will take more measures to check non-performing assets (NPAs) of the public sector banks.
"We are going to put in more measures to see that NPA level is controlled across the asset quality of banks. It is very very important for credit to continue to go to productive sectors," RBI Governor D Subbarao said while delivering the 5th R Venkataraman Endowment Lecture here.
RBI, in the past, has taken some steps in this regard including increase in provisioning norms and tightening norms for restructuring.
Subbarao noted that public sector banks have high NPAs than private sector banks. "It is true that NPAs in public sector banks are higher than private sector banks because their decision variables are different," he said.
The RBI governor was also non-committal on a time frame for rolling back liquidity tightening measures and said that they would remain in force till stability is achieved in the foreign exchange market
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