June 16, 2017 / 7:10 AM / 7 months ago

RBI deputy Mundra says state-run lenders may need more capital

NEW DELHI (Reuters) - Reserve Bank of India (RBI) Deputy Governor S.S. Mundra said on Friday state-run lenders may need more capital beyond the budgeted total allocation of 700 billion rupees ($10.84 billion) in the four fiscal years through March 2019.

Mundra, addressing reporters in the sidelines of a banking event in New Delhi, also said there was no specific timeline set by the central bank to identify additional loan defaulters on which bankers would need to start bankruptcy proceedings.

The RBI this week had identified 12 of the largest loan defaulters and said creditors must pursue bankruptcy proceedings against them.

Credit rating agencies have said India will ultimately need to inject more capital into state-run lenders, which hold the bulk of troubled loans in India, to make a dent in reducing the country’s $150 billion in stressed debt.

($1 = 64.5800 Indian rupees)

Reporting by Manoj Kumar; Editing by Malini Menon

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