Mumbai: The finance ministry is believed to have rejected banks’ plea to extend the March 2017 deadline set by the Reserve Bank of India Governor Raghuram Rajan to clean up their balance sheets. “In recent meetings with the finance ministry, many banks raised the risk to profits from the RBI deadline. Finance ministry acknowledged the concerns, but added that the RBI
clean up mandate and Rajan have the backing of prime minister,” a senior banking industry official said. Senior bankers have expressed concern as it would mean accelerated provisions and hit in profits. -Cogencis
