TIL Desk/Business/Hyderabad-Former Reserve Bank of India Governor C Rangarajan today said banks cannot escape from the responsibility of controlling Non-Performing Assets (NPA) in their balance sheets.
At a panel discussion on ‘Union Budget-2017’, organised by ICFAI Foundation for Higher Education, Rangarajan also said that though the adverse impact of demonetisation will wear off as the currency availability improves, some affects will not go away even as sectors like real estate will have to rethink their business models.
“The banking system is undoubtedly under stress. How to resolve that particular problem is only through capitalisation. Please remember even in good old Basil-I, the capital is 8 per cent of the risk weighted assets. So Rs 10,000 crore (capital infusion to banks in 2017-18 as mentioned in the budget) should not be compared with Rs 1 lakh crore or Rs 2 lakh crore,” he said.
