Mumbai/Mumbai Kolkata
The Reserve Bank of India has decided to empower the Over Site Committee and expand its functioning even though Indian banks have started solving the problem of NPAs, but the new directives need more clarity. Without this, this effort will only be an attempt to solve the problem, which is not expected to be solved.
“We are still awaiting working instructions. Only then will we understand how the regulator is asking to solve the problem of NPAs,” he said, “We know that the over-site committee will take measures to rectify the issue, but will the bankers be able to do so.”
M B Mahesh, Kotak Institutional Equities, said, “At first glance, this new directive does not see anything happening. We will look forward to the process of its being brought in and assess its success on some. The success of the process will only be assessed.”
On Monday itself, the RBI had announced a fresh creation of the Oversight Committee and expansion of the committee to deal with the rising NPAs (non-performing assets) cases. The NPAs of banks in the country have exceeded seven lakh crore rupees.
Mamata Binani, former president of the Institute of Company Secretaries of India, said, “The measures being taken so far to tackle the problem are inadequate. The government will have to intervene. The kind of crisis in the business that is going on will make the recovery of NPAs difficult and banks have to give powers to the committee to take a bold season,” he said.
