INSUBCONTINENT EXCLUSIVE:
"As of now we are now on top of the situation on the NPA problem," SBI Chairman Rajnish Kumar said.NEW YORK: Domestic banks are now "on top
of the situation" on the problem of non-performing assets (NPA), State Bank of India (SBI) Chairman Rajnish Kumar said
Kumar said that going by the initial results that have started coming in September, it seems that many banks are returning to profit
Elaborating further on the issue of NPAs, Kumar said last year the system was struggling with higher and elevated NPAs and largely it was
the steel and power sectors that got impacted the most
"The major challenge which the banks - public sector more and some of the private sector banks (in India) - they have been facing is the
For the last three years, it has been going on but as of now we are now on top of the situation on the NPA problem," Kumar told PTI in an
interview here."In the power sector, banks have still not been able to resolve the issues
But the Insolvency and Bankruptcy Code has helped the banks and at least now there is a solution available," he said.Kumar added that the
Insolvency and Bankruptcy Code has come as a "very good tool" in the hands of banks and financial creditors.On the value of the rupee, which
had this month fell below the 74 level compared to the dollar, Kumar said, "If the oil prices are stabilized, the exchange will also
stabilize Domestic inflation is not as much a cause of worry because it is very much well within the target that the Reserve Bank of India
has set."(: SBI Chief Rajnish Kumar Sees Bad Loan Provision Falling After 2 Quarters)He said domestically, the economy continues to do well
but the oil prices are the "major culprit" because that impacts the country's current account deficit in a big way and it puts pressure on
