RBI dy governor Gandhi asks banks to cut NPAs

In the wake of rising NPAs being the biggest problem facing the Indian banking sector today, The RBI deputy governor R Gandhi has asked banks to reduce their stressed assets as it bears an adverse impact on liquidity and capital in the sector. 

While the apex bank has received proposals to limit the number of players in the lending consortium to improve upon bad loans ratio, the deputy governor observed that this can have drawbacks too. 

However, the RBI official has asked banks to "urgently" work upon reducing its bad loans, going forward.

For NPAs, the government has already announced its plan to inject $11 billion capital into banks over the next four years to take care of NPAs. 

(With agencies)