Banks must not wait for growth to clean their balance sheets. Rather, growth will come once the books are cleaned, said Reserve Bank of India (RBI) governor Raghuram Rajan on Thursday. He did so while rapping the lenders for abusing the tools offered by the central bank to fight bad debt, to instead hide the extent of bad loans.
The recent clean-up operation has the central government’s blessings, he noted. Central bank officials had a series of meeting with the government, including at the “highest,” before coming up with its asset quality review (AQR) that is now causing havoc in banks’ quarterly numbers, throwing up heavy NPAs in the books, revealed the governor.
Read Full Article Over Here :