Banks worried about growing NPAs: Mathew

Banks have transformed themselves into project lenders and this was instrumental for the growing NPAs, a top official of South Indian Bank said.
Pointing that NPAs have been a 'serious' problem for the Indian banking sector, South Indian Bank Managing Director and CEO, V G Mathew, who recently took charge, said, "Earlier banks were lending for working capital needs. But nowadays they have transformed into project lenders. This kind of transformation was instrument for hike in NPAs".
He was speaking at a felicitation function organised jointly by State Forum of Bankers Clubs, here yesterday.
Declining credit solution process was a major challenge for the banks. Merchant bankers were keen to remove the hurdles for lending. "But we need to concentrate in credit risk. We were able to overcome the NPA situation of 1995-96 by 2004-05. It may be possible to come through the present hurdles as well in the near future", he said.

Corporation Bank Zonal Manager, A M M G Nair, who has been promoted as the General Manager of the bank, was also felicitated.