Reserve Bank tells banks to set aside more for stressed loans

Reserve Bank of India (RBI) has directed to set aside more for stressed loans.

• The central bank had aimed to increase the provisioning by 2.5 per cent every quarter.
• Public sector banks have seen a sharp rise in their non-performing assets in the last three years.
• Public sector banks had share an unequal burden of the stress.

Keys

• Governor of RBI– Raghuram Rajan