October 15, 2015 / 1:05 PM / 2 years ago

Rajan says to take close look at banks' asset quality

AIZAWL, India (Reuters) - Reserve Bank of India Governor Raghuram Rajan said on Thursday the RBI would take a close look at the asset quality of lenders, while calling on them to recognise all bad loans and put assets back to work after talking with company promoters.

Reserve Bank of India's Governor Raghuram Rajan attends the "Financial Inclusion: Can It Meet Multiple Macroeconomic Goals?" event during the 2015 IMF/World Bank Annual Meetings in Lima, Peru, October 8, 2015. REUTERS/Paco Chuquiure

The comments are the latest by Rajan pushing lenders to deal with their pile of non-performing assets as the government pushes for increased corporate investments.

Rajan said the RBI was also working with the government to find ways to ensure a fuller transmission of interest rates. The RBI has eased the repo rate by 125 basis points so far this year, including a bigger-than-expected 50 bps cut late last month.

He was addressing a news briefing after the conclusion of the RBI board meeting in the northeastern state of Mizoram.

Reporting by Suvashree Dey Choudhury; Editing by Subhranshu Sahu

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below