New Delhi: The rise in number of bad loans is causing a nuisance for the banking sector in India. The
maximum number of bad loans are from Government banks. The government is trying to provide funds to these banks and free them from the clutches of debts. However Raghuram Rajan, Ex-Governor of Reserve Bank of India (RBI) stated that more capital is required for the banks in public sector.
The public sector banks bad loans have been constantly increasing in last few years. RBI and Ministry of Finance are looking to control the ‘NPA’. However it does not seem to have helped much. In addition to this, banks have been asked to fulfil the ‘Basel – III’ criteria by 2019. Similarly, improvements in International Financial Reporting Standard (IFRS) are sought.
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