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The Reserve Bank of India will come out with measures to address asset quality issues in banks, said Rajiv Takru, secretary, financial services in the finance ministry today.
"We are all worried about the asset quality and it is being addressed," Takru said after attending the central bank's board meeting.
"The RBI will come out with measures and banks will have to follow," he added.
Non-performing assets in the banking sector are increasing sharply amid slowing economic growth. Rise in NPAs along with higher provisioning requirement for restructured loans, as mandated by the banking regulator, has impacted the profitability of banks.
Public sector banks have a higher share in both NPA and debt recast as compared to their private sector counterparts.
