Expressing concern over rising non-performing assets (NPAs), Reserve Bank of India Governor Raghuram Rajan, on Friday, said the situation would improve with stabilisation of the economy.
“Rising NPAs in PSU banks are a concern...Here in India, especially in PSBs, not in private banks, we have growing NPAs. Hopefully, it will stabilise. It has become somewhat an issue,” he said at an event here.
NPAs or bad loans of PSU banks rose by 28.5 per cent from Rs.1.83 lakh crore in March 2013, to Rs.2.36 lakh crore in September 2013.
Referring to the economy, Dr. Rajan said though India was going through a period of turmoil, growth appeared to be stabilising.
Having touched a decade-low of 4.5 per cent in 2012-13, the economic growth rate is projected to improve to 4.9 per cent in the current financial year ending March 31.
The issue of rising NPAs was also flagged by ICICI Bank Managing Director and Chief Executive Officer Chanda Kochhar, who attributed it to external factors.
She said the banking sector had successfully overcome the 2008 crisis, and would improve further with the revival in the economy.