Banks start to clean up balance sheets after RBI asset quality review
Efforts will enable flow of credit in the long term, deputy says
After a comprehensive asset quality review, banks have started the process of cleaning up their balance sheets by March 2017, a Reserve Bank of India (RBI) deputy governor has said.
Speaking in New Delhi, Harun Khan noted the RBI was taking “various steps” to address the issue of stressed assets.
“While this may lead to a short-term impact on profitability of some of the PSU [public-sector] banks, it would enable a healthy flow of credit to the system in the long run,” Khan said.
He went on to
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