President Pranab Mukherjee applaud Rajan’s efforts to cleanup bad loans

President Pranab Mukherjee has applauded the retired RBI Governor Raghuram Rajan for efforts to tackle bad loans or NPA. He praised the steps taken by Raghuram Rajan to cleanup more than 100 USD stressed assets in balance sheet of banks and said that rising NPAs are not desirable situation.

Pranab Mukherjee applaud efforts of Rajan to tackle bad loans
Pranab Mukherjee applaud efforts of Rajan to tackle bad loans

President Pranab Mukherjee was addressing at the centenary celebration of Karur Vysya bank function in Chennai.  “Of course more than you listen to NPAs of banking system, which is no doubt a matter of concern”, he said.

He said that just retired RBI governor Raghuram Rajan took many appropriate steps to put the banking system in right direction and tackle the bad loans or rising NPAs.

NPA of government banks was 10.90 percent in march 2015 which have increased to 11.40 percent in March 2016.

Net profit of banks came down

Also, net profits of the banks have came down from Rs 79,465 crore in March 2015 to Rs 32,285 crore rupees in March 2016.

President expresses deep concern over rising NPA

He expressed deep concern over rising NPA of banks. “NPAs are rising, which is not a desirable situation and that money must be available for lending to people.”, he said.

Rajan, who completed his 3-year term as Governor of the Reserve Bank of India on September 4, had forced banks to recognize the true state of their bad loans.

Raghuram Rajan had forced banks to recognize the true state of their bad loans
Raghuram Rajan had forced banks to recognize the true state of their bad loans

“Everybody at that point of time pointed out that when the major banking institutions in international arena were suffering, Indian banking system stood firmly and solidly because of its prudent management not indulging in some sort of profligation. I am happy to note that because of the basic foundations, and strength of our macroeconomic indices, Indian economy is doing reasonably well,” he said.

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