Second wave may worsen stressed assets in financial system: Rakesh Mohan
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The second wave of COVID-19 may worsen stressed assets in the banking system, adding pressure on the financial stability, said former RBI deputy governor Rakesh Mohan. He said the Indian banking system has been reeling under the pressure of non-performing asSecond wave may worsen stressed assets in financial system: Rakesh Mohan
The second wave of COVID-19 may worsen stressed assets in the banking system, adding pressure on the financial stability, said former RBI deputy governor Rakesh Mohan. He said the Indian banking system has been reeling under the pressure of non-performing assets (NPAs) since 2015. Various resolution measures including Insolvency and Bankruptcy Code were undertaken to bring down NPAs and then COVID-19 hit in 2020 impacting the growth process, he said during a virtual conference organised by India International Centre and Research & Information System for Developing Countries. Mohan, who served as deputy governor of the Reserve Bank of India (RBI) twice between 2002 and 2009, said «we have more difficult task than other countries because we had a legacy of bad debt before COVID-19». As per the Financial Stability Report of December 2020 by RBI, NPA could go up to 13.5 per cent in the later part of this year, he said, adding, "I would imagine that this would be worse because of the .. Read more