RBI Governor not in favour of stretching NPA norms

RBI Governor not in favour of stretching NPA norms

FPJ BureauUpdated: Friday, May 31, 2019, 06:06 PM IST
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Thiruvananthapuram : RBI Governor Raghuram Rajan said he was not in favour of stretching norms for non-performing assets (NPAs) or bad loans as investors will not get the true state of balance sheets.

He said it is useful to keep the NPA norms constant and by changing the definition of bad loans will only “dilute and obscure account”. Major state-owned banks in the country including SBI have been reeling under NPAs leading to erosion of profits on account of higher provisioning for bad loans in the third quarter of the current fiscal. He said government was also thinking on the lines of a Unique ID for businessmen to enable them get finance. “I think it is a very important development,” he said, adding that the existing difficulty faced by MSME’s in getting loans, as all banks, collateral, can be eased.

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