Rise in NPAs: Bankers for extension in restructuring deadline
Press Trust of India / Mumbai Jul 07, 2009, 18:05 IST
Concerned over rising slippages in the industry, bankers today sought an extension of loan restructuring facility and said more measures are needed to push credit demand in the economy.
In a meeting with the Reserve Bank Governor D Subbarao, ahead of the quarterly monetary policy end-July, bankers also sought relaxation in Non Performing Assets (NPA) norms in infrastructure lending and provisioning requirements in certain segments like housing.
Moreover, they informed the apex bank that credit demand continues to be subdued in the face of the economic downturn but flow is likely to pick up by September in line with the recovery in the economy.
"Though there are signs of improvement in economic activity, it is not showing in credit growth. We expect growth to pick up in the second quarter," SBI Chairman and Indian Banks Association Deputy Chairman O P Bhatt told reporters after the meeting.
Bhatt said the bankers have asked the apex bank to extend the deadline of loan restructuring facility to December from June.
Earlier this year, RBI had announced loan restructuring for certain sectors facing slowdown like real estate, up to June 30.
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