No financial crisis risk, but NPAs remain a worry: Rajan

Posted By: Religare
Subscribe to GoodReturns
For Quick Alerts
Subscribe Now  
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    Worried over rising bad loans at some banks, RBI Governor Raghuram Rajan said there was no danger of any financial crisis but it may be early to declare that the worst was over on the NPA front, PTI reported.

    No financial crisis risk, but NPAs remain a worry: Rajan
    "I would not be prepared to make that statement today only because you see a variety of problems across banks. Some banks have managed to bring down their bad loan positions, for others it is still increasing," Rajan said in a reply to a query over Non-Performing Assets (NPAs) in the banking system.

    "I would be more confident when there will be a uniform sort of series of results across the banks," Rajan said.

    He, however, sought to undermine the concerns, saying, "if the question is whether are we in the danger of a financial crisis? The answer is no!"

    He further said that he is more worried about the losses to taxpayers and the effects on banks' functioning due to their rising bad loan levels.

    The Governor said resolution of NPAs will be possible only with higher economic growth, which he termed as "slow" and the actions which the banks take.

    It can be noted that bad loans are on the rise and none of the banks in FY14 have reported any major improvement on the asset quality side.

    Read more about: rbi raghuram rajan
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    Get Latest News alerts from Goodreturns

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more